(Table: Demand for Lenny's Coffee) Use Table: Demand for Lenny's Coffee.Lenny's Café is the only source of coffee for hundreds of miles in any direction.If Lenny increases the quantity sold from 5 cups to 6,his marginal revenue will be:

A) $4.
B) $24.
C) -$1.
D) $5.

Question

Naaman Roberson · Accepted Answer

Final Answer : C, Explanation :  According to the table, when Lenny increases the quantity sold from 5 cups to 6 cups, the total revenue decreases from $30 to $29. Therefore, the marginal revenue is negative ($29-$30=-$1). Hence, Lenny should not increase the quantity sold from 5 cups to 6 cups as it will decrease his total revenue.

(Table: Demand for Lenny's Coffee) Use Table: Demand for Lenny's Coffee.Lenny's Café is the only source of coffee for hundreds of miles in any direction.If Lenny increases the quantity sold from 5 cups to 6,his marginal revenue will be:

A) $4.
B) $24.
C) -$1.
D) $5.

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Learning Objectives

Related questions

(Table: Demand for Lenny's Coffee) Use Table: Demand for Lenny's Coffee.Lenny's Café is the only source of coffee for hundreds of miles in any direction.If Lenny increases the quantity sold from 5 cups to 6,his marginal revenue will be:A) $4.B) $24.C) -$1.D) $5.

Definitions

Learning Objectives

Learning Objectives

Related questions

(Table: Demand for Lenny's Coffee) Use Table: Demand for Lenny's Coffee.Lenny's Café is the only source of coffee for hundreds of miles in any direction.If Lenny increases the quantity sold from 5 cups to 6,his marginal revenue will be:

A) $4.
B) $24.
C) -$1.
D) $5.