Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
$20
B
$25
C
$30
D
$35
Understanding the Answer
Let's break down why this is correct
Answer
Marginal revenue is the extra money a company makes when it sells one more unit of its product. To find the marginal revenue, we first need to know the total revenue and the number of units sold. In this case, the company has made $5000 by selling 250 units. If we assume that the price remains the same for the next unit, we can calculate the revenue from selling one more unit. Since the total revenue from 250 units is $5000, selling one more unit would bring the total revenue to $5000 plus the price of that additional unit, which is $20 (since $5000 divided by 250 units equals $20).
Detailed Explanation
Marginal revenue is how much money a company makes from selling one more unit. Other options are incorrect because This answer suggests that selling one more unit adds $20; This option assumes that selling one more unit earns $30.
Key Concepts
Marginal Revenue
Total Revenue
Topic
Marginal Revenue and Profit Calculations
Difficulty
medium level question
Cognitive Level
understand
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