Question 15
MediumOriginal questionA firm can sell more only by lowering its price.
| Output | 1 | 2 | 3 | 4 | 5 | 6 |
|---|---|---|---|---|---|---|
| Price (₹) | 20 | 18 | 16 | 14 | 12 | 10 |
What is the marginal revenue of the 6th unit?
Show the answer and explanation
CorrectNot quiteAnswer A
Correct answer: A
Explanation
TR₅ = 12 × 5 = ₹60; TR₆ = 10 × 6 = ₹60.
MR₆ = 60 − 60 = ₹0: the 6th unit adds nothing to revenue.
Worth noting
₹10 is the price of the 6th unit; MR is lower because all six now sell at ₹10.
- Concept
- Zero MR
- Typical timeTypical
- 70 s
- Your timeYours
- —
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