Bubba Golf, a manufacturer of golf clubs, can sell 3 drivers at $500 each. To sell 4
drivers, Bubba Golf must lower the price to $460 each. The marginal revenue of the
fourth club is
O $20.
O $60.
O $420.
O $520.

Question

15-03-2022
Business

contestada

Bubba Golf, a manufacturer of golf clubs, can sell 3 drivers at $500 each. To sell 4
drivers, Bubba Golf must lower the price to $460 each. The marginal revenue of the
fourth club is
O $20.
O $60.
O $420.
O $520.

Respuesta :

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Parrain Parrain · Answer 1 · 2022-03-22T13:35:00+01:00

Based on the revenue of the other clubs and the new price, the marginal revenue for the 4th club is $420.

What is the marginal revenue for the fourth club?

Marginal revenue refers to the amount that a company makes when it sells an extra unit of a good or service.

The extra unit sold here will be the 4th club but because the selling price dropped, the marginal revenue will be lower than the selling price. The closest option to this is $420.

In conclusion, option C is correct.

Find out more on marginal revenue at https://brainly.com/question/10822075.

Bubba Golf, a manufacturer of golf clubs, can sell 3 drivers at $500 each. To sell 4 drivers, Bubba Golf must lower the price to $460 each. The marginal revenue of the fourth club is O $20. O $60. O $420. O $520.

Respuesta :

What is the marginal revenue for the fourth club?

Otras preguntas

Bubba Golf, a manufacturer of golf clubs, can sell 3 drivers at $500 each. To sell 4
drivers, Bubba Golf must lower the price to $460 each. The marginal revenue of the
fourth club is
O $20.
O $60.
O $420.
O $520.