Rs. 5
Rs. 10
Rs. 30
Rs. 15
Answer is Right!
Answer is Wrong!
The correct answer is A. Rs. 5.
Marginal revenue is the additional revenue that a firm earns from selling one more unit of a good or service. It is calculated by taking the change in total revenue and dividing it by the change in quantity sold.
In this case, the price of the good is Rs. 10 and the price elasticity of demand is (-) 2. This means that if the firm lowers the price by 1%, the quantity demanded will increase by 2%.
To calculate marginal revenue, we can use the following formula:
MR = P * (1 + 1/E)
where:
MR =
448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube