Multiple choice

If a seller realises Rs. 10,000 after selling 100 units and Rs. 14,000 after selling 120 units, what is the marginal revenue?

  1. Rs. 4,000

  2. Rs. 450

  3. Rs. 200

  4. Rs. 100
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Marginal revenue is the additional revenue from selling one more unit. TR increases from Rs. 10,000 to Rs. 14,000 when quantity increases from 100 to 120 units. Additional revenue = Rs. 4,000 for 20 additional units. MR per unit = 4000/20 = Rs. 200.

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