

The normal revenue of 25 (500/20) per unit will not count as the marginal revenue definition MR is only. In this case, marginal revenue will be 18. So I hope you better understand all the three points. Marginal revenue will be: 100 (change in revenue) / 50 units (change in quantity) 2 (marginal revenue) A company generally sells 20 units for 500 but opts to sell an additional unit for 18. The workers are paid according to the additional previous output generated by using additional input. The workers are not paid according to the output and cost. Hence the worker get paid according to the marginal product derived from the additional previous and unit. So let's move to the last point, which is the 3rd point. The output is not allocated according to the production by the fact that the allocation is done based on that is no revenue that each factor produces. So let's move to the second point, which is the distribution theory suggests allocating revenue to each output according to the additional product that is produces. Product is not the total revenue earned per worker, and it is the additional revenue earned by using an additional unit of the variable factor. It is the product of additional revenue and the additional output of the variable factor, marginal revenue. So here the three points which are given in the question for the first point is the marginal revenue product of the additional revenue generated by using additional import. The workers are not paid according to output and cost the workers are paid according to the additional previous output generated by using additional input. Let's move to the 3rd 1, which is hence the worker get paid according to the marginal product derived from the previous additional unit. The allocation is done based on the additional revenue that each factor produces. The output is not allocated according to the production by the factor. Let's move to the second one, which is the distribution theory suggests allocating revenue to each output according to the additional product that is produces. And it is the additional revenue earned by using an additional unit of the variable factor. It is the product of additional revenue and the additional output of the variable factor, marginal revenue product is Nordea total revenue and power workers. So let's see here that the first one is the marginal revenue product is the additional revenue generated by using additional input. So while seeing the question learns for the move to the answer.
