Price $25.00 $24.00 $23.00 $22.50 $22.00 321.60 $21.20 QUanity TC $130 $275 $435 I$610 800 $1,005...

Question

Question

Answer 1

Answer #1

Answer : The answer is option A.

Total revenue at output level of 20 = Price * Quantity = 23 * 20 = $ 460

Total revenue when output level is 10 = 24 * 10 = $240

Marginal revenue at output level of 20 = Total revenue at output level of 20 - Total revenue at output level of 10 = 460 - 240 = $220

Therefore, option A is correct.

Answer 2

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