JAMB - Economics (1993 - No. 43)
Determine the marginal revenue if the total revenue is 80.00
6.00
12.00
14.00
18.00
Explanation
A company calculates marginal revenue by dividing the change in total revenue by the change in total output quantity.
changes in total revenue = 80 - 68 = 12
change in output = 1
therefore 12/1 = 12
so when total revenue is 80, the marginal revenue would be 12
| outputs in units | total revenue in N | Average revenue in N | marginal revenue in N |
| 1 | 20 | 20 | 20 |
| 2 | 38 | 19 | 18 |
| 3 | 54 | 18 | 16 |
| 4 | 68 | 17 | 14 |
| 5 | 80 | 16 | 12 |
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