At which quantity does this firm produce the greatest marginal revenue? Quantity (Q) Total Revenue (TR) Marginal Revenue (MR) Total Cost (TC) Marginal Cost (MC) 1 1,200 ? 500 500 2 2,200 ? 775 275 3 3,400 ? 1,000 225 4 4,900 ? 1,250 250 5 5,500 ? 1,650 400 6 6,000 ? 2,500 850 7 6,500 ? 4,000 1,500 8 6,200 ? 6,400 2,400

Producing 4 units yields the highest marginal revenue at 1500.

Explanation:

To calculate marginal revenue we look at the change in revenue figure compared to the change in units. In other words dividing the change in total revenue by the change in total output quantity.

Based on the information given these are the changes in marginal revenue per quantity.

1. 1200

2. 2200 - 1200 = 1000

3. 3400 - 2200 = 1200

4.  4900 - 3400 = 1500

5. 5500 - 4900  = 600

6. 6000 - 5500 = 500

7. 6500 - 6000 = 500

8. 6200 - 6500 = (300)

Thus based on the comparisons of the different quantities optimal marginal revenue is reached at 4 units of production. 1500 total marginal revenue

answer; /// i do believe that the above is (true)

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation: