Question

question the table below provides revenue and cost information for a perfectly competitive firm producing paper clips. paper clip total revenue quantity (q) total revenue (tr) 20,000 $1,000 40,000 $2,000 60,000 $3,000 80,000 $4,000 100,000 $5,000 what is the marginal revenue of producing paper clips? provide your answer below: mr = $

Explanation:

Step1: Recall marginal revenue formula

$MR=\frac{\Delta TR}{\Delta Q}$

Step2: Select two - point data

Take the first two rows: $\Delta Q = 40000 - 20000=20000$, $\Delta TR=2000 - 1000 = 1000$

Step3: Calculate marginal revenue

$MR=\frac{1000}{20000}=0.05$

Answer:

$0.05$