The Following Table Shows the Units of the Output Sold

question 65

Multiple Choice

The following table shows the units of the output sold at different price levels by Gizmo's Inc. Table 10.1

-According to Table 10.1,what is the marginal revenue of the third unit?

• A)$42
• B)$32
• C)$18
• D)$14
• E)$10

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Definitions:

Unit Sales

The measure of the quantity of individual items sold by a company, as opposed to total revenue.

Break-Even

The point at which total costs and total revenues are equal, resulting in no net gain or loss.

Fixed Expense

Costs that do not fluctuate with changes in production level or sales volume, such as rent, salaries, and insurance premiums.

Variable Expense

Expenses that vary directly with changes in production volume or business activity levels.