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Assume that when price is Rs. 20, quantity demanded is 9 units, and when price is Rs. 19, 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. 19
  • c)
    Rs. 10
  • d)
    Re. 1
Correct answer is option 'C'. Can you explain this answer?
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Assume that when price is Rs. 20, quantity demanded is 9 units, and wh...
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Assume that when price is Rs. 20, quantity demanded is 9 units, and wh...
Marginal revenue is the additional revenue gained from selling one additional unit of a product. It is calculated by dividing the change in total revenue by the change in quantity.

Given:
Price when quantity demanded is 9 units = Rs. 20
Price when quantity demanded is 10 units = Rs. 19

To calculate marginal revenue, we need to find the change in total revenue and change in quantity.

Change in quantity = 10-9 = 1 unit
Change in total revenue = (Price when quantity demanded is 10 units x Quantity demanded at 10 units) - (Price when quantity demanded is 9 units x Quantity demanded at 9 units)
= (19 x 10) - (20 x 9)
= 190 - 180
= Rs. 10

Marginal revenue = Change in total revenue / Change in quantity
= Rs. 10 / 1
= Rs. 10

Therefore, the marginal revenue resulting from an increase in output from 9 units to 10 units is Rs. 10.
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Community Answer
Assume that when price is Rs. 20, quantity demanded is 9 units, and wh...
As we know that MR=∆TR/∆Q
=19×10-20×9 ÷ 10-1
=10
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Assume that when price is Rs. 20, quantity demanded is 9 units, and when price is Rs. 19, 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. 19c)Rs. 10d)Re. 1Correct answer is option 'C'. Can you explain this answer?
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Assume that when price is Rs. 20, quantity demanded is 9 units, and when price is Rs. 19, 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. 19c)Rs. 10d)Re. 1Correct answer is option 'C'. 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. 20, quantity demanded is 9 units, and when price is Rs. 19, 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. 19c)Rs. 10d)Re. 1Correct answer is option 'C'. 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. 20, quantity demanded is 9 units, and when price is Rs. 19, 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. 19c)Rs. 10d)Re. 1Correct answer is option 'C'. Can you explain this answer?.
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