The chart shows the marginal revenue of producing apple pies. A 3-column table titled The return on pie production has 8 rows. The first column is labeled Pies produced per day with entries 0, 1, 2, 3, 4, 5, 6, 7. The second column is labeled Total revenue with entries blank, 10, 20, 30, 40, 50, 60, 70. The third column is labeled Marginal revenue with entries blank, 10, 10, 10, 10, 10, 10, 10. According to the chart, the marginal revenue decreases by ten dollars as production increases. increases by ten dollars as production increases. falls to zero dollars as production increases. remains the same as production increases.

Respuesta :

Answer:

Remains the same as production increases

Explanation:

The marginal revenue is the additional amount of money earned for every additional unit of pie produced.

As we can see in the question, the marginal revenue remains the same: it is always 10, because every additional unit of pie produces 10 of revenue.

According to the chart, the marginal revenue increases by ten dollars as production increases.

What is marginal revenue?

Marginal revenue measures the rate of change of total revenue as output increases. According to economic theory, profit is maximised when marginal revenue is equal to marginal cost.

Marginal revenue = change in total revenue / change in quantity sold

Marginal revenue when output is 3 units = (30 - 20) / (3 - 2) = 10

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