The marginal revenue that would be derived from production of the second unit would be

A) $20.
B) $18.
C) $16.
D) $14.
E) $12.

Question

The marginal revenue that would be derived from production of the second unit would beA) $20.B) $18.C) $16.D) $14.E) $12.

Jensly Torres · Accepted Answer

Final Answer : C, Explanation :  Marginal revenue is the change in total revenue from selling one more unit. The first unit sells for $20, and the second unit sells for $18, so the marginal revenue for the second unit is $18 - $20 = $16.

The marginal revenue that would be derived from production of the second unit would be

A) $20.
B) $18.
C) $16.
D) $14.
E) $12.

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