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Consider the following case: price is $100 and 20 units are sold, then price drops to $99 and 21 units are sold.Calculate the marginal revenue: $________.

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Solution 1

To calculate the marginal revenue, follow these steps:

  1. Calculate the total revenue before the price drop: Total revenue = Price * Quantity Total revenue = 10020=100 * 20 = 2000

  2. Calculate the total revenue after the price drop: Total revenue = Price * Quantity Total revenue = $99 * 2 Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.

Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
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