To solve this question, let's analyze the data provided in the chart.
The chart shows three columns: the number of units produced per day, the total revenue, and the marginal revenue.
- Total revenue for each level of production is:
- 0 units: Not provided
- 1 unit: [tex]$10
- 2 units: $[/tex]20
- 3 units: [tex]$30
- 4 units: $[/tex]40
- 5 units: [tex]$50
- 6 units: $[/tex]60
- 7 units: [tex]$70
- Marginal revenue for each level of production is:
- 1 unit: $[/tex]10
- 2 units: [tex]$10
- 3 units: $[/tex]10
- 4 units: [tex]$10
- 5 units: $[/tex]10
- 6 units: [tex]$10
- 7 units: $[/tex]10
Marginal revenue is the additional revenue that a company earns by selling one more unit of a good or service. This chart shows that the marginal revenue is consistently [tex]$10 for each additional unit produced, from 1 to 7 units.
Given this consistent marginal revenue, it implies:
- The marginal revenue does not decrease by ten dollars as production increases.
- The marginal revenue does not increase by ten dollars as production increases.
- The marginal revenue does not fall to zero as production increases.
Instead, the marginal revenue remains constant at $[/tex]10 for each additional unit produced.
Therefore, according to the chart, the correct conclusion is that the marginal revenue remains the same as production increases. So the option is:
4. remains the same as production increases.
