WAEC Economics 2020 Paper

Concept:Marginal revenue is the additional money a firm earns when it sells one more unit of its product.Explanation:Marginal revenue is calculated by measuring the change in total revenue against the change in the quantity sold.The rule used is:$$MR = \frac{\Delta TR}{\Delta Q}$$Here, $\Delta TR$ stands for the increase in total revenue, and $\Delta Q$ stands for the increase in output sold.When one extra unit is sold, the total revenue rises by exactly $\$2.00$.Therefore, the marginal revenue from that additional unit is $\$2.00$.This matches option C.Answer:C. $\$2.00$