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GarryVolchara [31]
4 years ago
14

Consider a firm that sells lamps in a perfectly competitive market. As its sales go up from 10 lamps to 11 lamps, its total reve

nue increases from $500 to $550. What is the marginal revenue of this firm
Business
1 answer:
Lorico [155]4 years ago
7 0

Answer:

The marginal revenue is $50

Explanation:

MR = 50

The marginal revenue is the increase in revenue brought about by sale of one extra unit. In this case, that would be $50.

Marginal Revenue

= change in total revenue / change in quantity

= 550−500 / 11−10

= 50/1 = $50

MR=$50

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