So, on this test I asked my students to calculate marginal revenue. Marginal Revenue = Change in Revenue/change in quantity. Revenue = Price * quantity So, I gave my students a set of prices and quantities and asked them to calculate marginal revenue between two points. (They have to figure out they need to calculate revenue first.) Many students miss the question. (Im not surprised about that.) But, then I give students a chance to rework the question once they know the answer, and explain why the answer is what it is. In this case, the points were: Price = $5, Quantity = 6 and Price = $6, quantity = 5. So, revenue is $30 both times- no change, so MR = $0. Heres one students explanation for why MR = $0. There is no revenue given, so the answer is $0. *sigh*
Posted on: Tue, 18 Nov 2014 18:32:30 +0000
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