When price of a product is Rs. $20$ per unit a firm is in a position to sell $10$ units, however with decrease in price to RS. $19$ per unit a firm sells $11$ units. Find the marginal revenue from increase in sale from $10$ to $11$ units___.

₹

10

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₹

11

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₹

9

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₹

8

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Solution

The correct option is B ₹ $9$
Marginal revenue refers to the change in revenue or additional revenue which a firm earns on selling a unit more of its output. It is calculated by dividing the change in total revenue by change in total quantity of commodity sold.

Marginal revenue = Change in total revenue/ Change in quantity of commodity sold.

Change in total revenue = Rs. ( 11 x 19 - 10 x 20)

= Rs. (209 - 200)

= Rs. 9

Change in quantity sold = (11 - 10) units

= 1 unit

Marginal revenue = Rs. 9 / 1 unit = Rs. 9.

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When price of a product is Rs. 20 per unit a firm is in a position to sell 10 units, however with decrease in price to RS. 19 per unit a firm sells 11 units. Find the marginal revenue from increase in sale from 10 to 11 units___.

When price of a product is Rs. $20$ per unit a firm is in a position to sell $10$ units, however with decrease in price to RS. $19$ per unit a firm sells $11$ units. Find the marginal revenue from increase in sale from $10$ to $11$ units___.