The Following Table Shows the Units of the Output Sold

question 27

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:

Savings

The portion of income not spent on current expenditures or taxes, which is set aside for future use or investment.

Autonomous Consumption

Spending that does not depend on current income levels, such as basic necessities, implying that this consumption occurs even in the absence of income.

Disposable Income

represents the amount of money that households have available for spending and saving after income taxes have been accounted for.

Saving

The portion of income that is not spent on consumption but rather set aside for future use or emergencies, contributing to personal and national wealth.