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When a firm charges $70 per unit of its product, the quantity of the product demanded...

When a firm charges $70 per unit of its product, the quantity of the product demanded is 800 units. When the firm lowers the price to $68, the quantity demanded increases to 1000 units. What is the firm's marginal revenue from the 900th unit ($)?
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Answer #1

Firm's marginal revenue from the 900th unit is $68.

This is because when price is lowered from 70 to 68,then demand increases from 800 to 1000.It means that 900th unit has also been sold at $68.So, marginal revenue from the 900th unit is $68.

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