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Assume that when price is Rs. 40 quantity demanded is 9 units, and when price is Rs. 38, quantity demanded is 10 units. Based on this information, what is the marginal revenue resulting from an increase in output from 9 units to 10 units?
  • a)
    Rs. 20
  • b)
    Rs. 40
  • c)
    Rs.38
  • d)
    Rs. 1
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Assume that when price is Rs. 40 quantity demanded is 9 units, and whe...
Given information:
Price of one unit = Rs. 40, Quantity demanded at this price = 9 units
Price of one unit = Rs. 38, Quantity demanded at this price = 10 units

To find: Marginal revenue resulting from an increase in output from 9 units to 10 units

Explanation:
Marginal revenue is the additional revenue earned by selling one additional unit of a product.

To find marginal revenue, we need to calculate the total revenue earned from selling 10 units and subtract it from the total revenue earned from selling 9 units.

Total revenue earned from selling 9 units = Price per unit * Quantity demanded
= Rs. 40 * 9
= Rs. 360

Total revenue earned from selling 10 units = Price per unit * Quantity demanded
= Rs. 38 * 10
= Rs. 380

Marginal revenue = Total revenue earned from selling 10 units - Total revenue earned from selling 9 units
= Rs. 380 - Rs. 360
= Rs. 20

Therefore, the marginal revenue resulting from an increase in output from 9 units to 10 units is Rs. 20.
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Community Answer
Assume that when price is Rs. 40 quantity demanded is 9 units, and whe...
40 × 9=360
38×10=380
380-360=20
so marginal revenue is 20
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Assume that when price is Rs. 40 quantity demanded is 9 units, and when price is Rs. 38, quantity demanded is 10 units. Based on this information, what is the marginal revenue resulting from an increase in output from 9 units to 10 units?a)Rs. 20b)Rs. 40c)Rs.38d)Rs. 1Correct answer is option 'A'. Can you explain this answer?
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Assume that when price is Rs. 40 quantity demanded is 9 units, and when price is Rs. 38, quantity demanded is 10 units. Based on this information, what is the marginal revenue resulting from an increase in output from 9 units to 10 units?a)Rs. 20b)Rs. 40c)Rs.38d)Rs. 1Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Assume that when price is Rs. 40 quantity demanded is 9 units, and when price is Rs. 38, quantity demanded is 10 units. Based on this information, what is the marginal revenue resulting from an increase in output from 9 units to 10 units?a)Rs. 20b)Rs. 40c)Rs.38d)Rs. 1Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Assume that when price is Rs. 40 quantity demanded is 9 units, and when price is Rs. 38, quantity demanded is 10 units. Based on this information, what is the marginal revenue resulting from an increase in output from 9 units to 10 units?a)Rs. 20b)Rs. 40c)Rs.38d)Rs. 1Correct answer is option 'A'. Can you explain this answer?.
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