A&B Wholesalers Sells 1,000 Widgets Per Day at $1 Each

question 63

Multiple Choice

A&B Wholesalers sells 1,000 widgets per day at $1 each. A&B has introduced a new product to itsmix called the wiggle. It is estimated that A&B will sell 400 wiggles per day at $2 each; however,the sales of the widgets will decrease by 200 units per day. The firm's marginal change in revenues from adopting the wiggle is

• A) $1,800.
• B) $600.
• C) $1,600.
• D) $800.

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