Question 3 A car manufacturer notices that they can sell 11 cars at £18,200, but in order to sell 12 cars they have to
drop the price to £17,400. The marginal cost of producing the 12th car is £9,000. Which of the following
statements is correct?
a) The marginal revenue from selling the 12th car is £18,200.
b) The loss in total revenue of increasing the total number of cars sold from 11 to 12 cars is £800.
c) The marginal revenue when the output is 11 cars is £8,600.
d) The firm should increase its output to maximise its profits.

The statement that is correct is B. The loss in total revenue of increasing the total number of cars sold from 11 to 12 cars is £800.

Marginal revenue implies the additional revenue that's made as a result of an extra unit sold. Marginal cost is the extra cost incurred as a result of an additional unit produced.

Based on the information given, the marginal revenue will be:

= $17400 - $18200

= -$800.

Therefore, there'll be a loss of $800.

Read related link on:

link

b) The loss in total revenue of increasing the total number of cars sold from 11 to 12 cars is £800.

Explanation:

Marginal revenue is the benefit associated with the sale of one more unit, while marginal costs are the expenses incurred in producing an extra unit. To determine the marginal revenue, one has to isolate the revenue from the last item sold with revenue from the previous units.

In this case, the marginal revenue will be the price of the 12th item minus the price of the 11th item.

Marginal revenue =$17,400 -$18,200

=-$800

Marginal revenue = - $800

i would go with get a bachelor’s degree

hope i

-lavira : )

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.