Question

Assume that when price is Rs. 20, quantity demanded is 9 units, and when price is Rs. 19, quantity demanded is 10 units. Based on this information, what is the marginal revenue resulting from an increase in output from 9 units to 10 units?

• A. Rs. 20
• B. Rs. 19
• C. Rs. 10
• D. Rs. 1

Answer 1

The correct option is C Rs. 10

$MR=\frac{ChangeinTR}{Changeinoutput}$
$=\frac{(10\times 19)-(20\times 9)}{10-9}=Rs.10$