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WAEC Economics 2020 Question 22

Question 22

Market Structures

Use the table below (Table 1, the total revenue schedule of a firm) to answer the question.
Output (units) | 50 | 60 | 70 | 80 | 90
Total revenue (TR) $ | 85 | 102 | 119 | 136 | 153
What is the firm's marginal revenue?

  1. A.$153.00
  2. B.$17.00
  3. C.$1.70
  4. D.$0.80
Show the answer and explanation

Answer: C ($1.70)

Explanation

MR = 17 ÷ 10 = $1.70 for each extra unit.