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Solution:
To calculate the marginal revenue resulting from an increase in output from 9 units to 10 units, we need to first calculate the total revenue generated from selling 9 units and 10 units separately, and then find the difference between the two.
Given that when the price is Rs.20, the quantity demanded is 9 units. So, the total revenue generated at this price is:
Total revenue at price Rs.20 = Price x Quantity demanded
= Rs.20 x 9
= Rs.180
Similarly, when the price is Rs.19, the quantity demanded is 10 units. So, the total revenue generated at this price is:
Total revenue at price Rs.19 = Price x Quantity demanded
= Rs.19 x 10
= Rs.190
Therefore, the marginal revenue resulting from an increase in output from 9 units to 10 units is:
Marginal revenue = Total revenue from 10 units - Total revenue from 9 units
= Rs.190 - Rs.180
= Rs.10
So, the marginal revenue resulting from an increase in output from 9 units to 10 units is Rs.10.
Correct option is (b)