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Calculate the Marginal Revenue when output rises from 350 to 410 pounds.

| Total Output (Q) (Pounds) | Price per Pound ($) | Total Revenue ($) | Marginal Revenue ($) |
|---|---|---|---|
| 0 | 2.00 | 0.00 | - |
| 100 | 2.00 | 200.00 | |
| 180 | 2.00 | 360.00 | |
| 330 | 2.00 | 660.00 | |
| 350 | 2.00 | 700.00 | |
| 410 | 2.00 | 820.00 | |
| 420 | 2.00 | 840.00 | |
| 400 | 2.00 | 800.00 | |

Options:
A. $2.00
B. $1.00
C. $1.50

Answer :

To calculate the Marginal Revenue (MR) when output rises from 350 to 410 pounds, we need to follow these steps:

  1. Identify Total Revenue at Both Output Levels:

    • Total Revenue at 350 pounds: $700.00
    • Total Revenue at 410 pounds: $820.00

  2. Calculate the Change in Total Revenue:
    [tex]\text{Change in Total Revenue} = \text{Total Revenue at 410 pounds} - \text{Total Revenue at 350 pounds}[/tex]
    [tex]\text{Change in Total Revenue} = 820 - 700 = 120[/tex]

  3. Calculate the Change in Output:
    [tex]\text{Change in Output} = 410 - 350 = 60[/tex]

  4. Calculate Marginal Revenue (MR):
    Marginal Revenue is defined as the change in total revenue divided by the change in quantity or output.
    [tex]\text{Marginal Revenue (MR)} = \frac{\text{Change in Total Revenue}}{\text{Change in Output}}[/tex]
    [tex]\text{Marginal Revenue (MR)} = \frac{120}{60} = 2[/tex]

Thus, the Marginal Revenue when output increases from 350 to 410 pounds is $2.00 per pound. This means for each additional pound produced and sold, the revenue increases by $2.00, given the constant price per pound.

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