A manufacturing firm operating in an imperfectly competitive market sells 5 units of its c… — JAMB UTME

A manufacturing firm operating in an imperfectly competitive market sells $5$ units of its commodity at a price of $\text{₦}30$ per unit. In order to increase its sales to $6$ units, the firm lowers the price to $\text{₦}27$ per unit. What is the marginal revenue ( $\text{MR}$ ) of the $6\text{th}$ unit in Naira ( $\text{₦}$ )?

Cevap: 12 ₦

Cevap

The marginal revenue of the 6th unit is 12 Naira.

Marginal revenue is calculated as the change in total revenue (

\Delta TR

) divided by the change in total output (

\Delta Q

). Initial total revenue (

TR_1

) is

5 \times 30 = \text{₦}150

. Total revenue after expanding output (

TR_2

) is

6 \times 27 = \text{₦}162

. Thus,

MR = 162 - 150 = \text{₦}12

Adım Adım Çözüm

Calculate initial Total Revenue (TR_1)

TR_1 = 30 * 5 = 150 Naira

Total revenue is equal to price per unit multiplied by quantity sold.

Calculate new Total Revenue (TR_2)

TR_2 = 27 * 6 = 162 Naira

The new price applies to all 6 units sold in an imperfectly competitive market.

Subtract initial Total Revenue from new Total Revenue to find Marginal Revenue (MR)

MR = 162 - 150 = 12 Naira

Marginal revenue measures the change in total revenue resulting from selling one additional unit of output.

Anahtar Kavram

Marginal Revenue and Total Revenue Relationship

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