Test Index

WAEC Economics 2020 Paper

Question : 21

Total: 48

Solution:

Concept:

Marginal revenue is the additional revenue gained from selling one more unit of output.

Explanation:

Use the formula:

MR = \frac{\Delta TR}{\Delta Q}

, where

\Delta TR

is the change in total revenue and

\Delta Q

is the change in quantity produced.

From the total revenue schedule, total revenue increases by

\$17.00

when output increases by

10

units.

So,

MR = \frac{\$17.00}{10} = \$1.70

Answer:

\$1.70

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