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What is the marginal revenue

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Reference no: EM132728628

Problem 1: Fixed costs are €700,000 per year and a variable cost of €70 is incurred for every additional unit produced. The current selling price is €150 and at this price 10,000 units are demanded per year. It is estimated that for each successive increase (decrease) in price of €2, annual demand would be proportionally reduced (increased) by 500 units. What is the marginal revenue?

A) €70-€0.001x

B) €190-€0.008x

C) €250-0.002x

D) €150-€0.004x

Reference no: EM132728628

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