Dave sells 4 gallons of milk at $5 per gallon. If he increases his sales to 5 gallons at the same price per gallon, calculate

Question

mr Goodwill [35]

3 years ago

15

Dave sells 4 gallons of milk at $5 per gallon. If he increases his sales to 5 gallons at the same price per gallon, calculate

Dave's marginal revenue from selling milk.

Business

1 answer:

Snezhnost [94] · Answer 1 · 2022-02-01T00:41:07+03:00

Answer:

Dave's marginal revenue from selling milk is $ 5.

Explanation:

This problem requires us to calculate Dave's marginal revenue from selling milk. The marginal revenue is calculated by subtracting current reveue form the expected or forecasted revenue. Detail calculation is given below.

Current reveune = 4 * 5 =20 dollars -A

Expected Reveunue = 5 * 5 = 25 dollars -B

Marginal revenue = A-B = 25- 20 = $ 5

Dave sells 4 gallons of milk at​ $5 per gallon. If he increases his sales to 5 gallons at the same price per​ gallon, calculate​

Dave sells 4 gallons of milk at $5 per gallon. If he increases his sales to 5 gallons at the same price per gallon, calculate