A bakery can sell 800 cupcakes at​ $3 each, or​ 1,000 cupcakes at​ $2.50 each.  What is the marginal revenue associated with cupcakes 800 to​ 1,000?

A.

​$0.10

B.

​$2.50

C.

​$0.50

D.

​$0.20

To calculate the marginal revenue for cupcakes between 800 and 1,000, we first need to understand what marginal revenue (MR) means. Marginal revenue is the additional revenue earned by selling one more unit of a product.

### Step 1: Calculate the total revenue at 800 and 1,000 cupcakes

- **Revenue at 800 cupcakes:**  
  Price = $3  
  Total Revenue = $ 800 \times 3 = 2400 $ dollars

- **Revenue at 1,000 cupcakes:**  
  Price = $2.50  
  Total Revenue = $ 1000 \times 2.50 = 2500 $ dollars

### Step 2: Calculate the change in revenue

\[
\text{Change in Revenue} = 2500 - 2400 = 100 \text{ dollars}
\]

### Step 3: Calculate the number of additional cupcakes sold

\[
1000 - 800 = 200 \text{ cupcakes}
\]

### Step 4: Calculate the marginal revenue per cupcake

\[
\text{Marginal Revenue} = \frac{100}{200} = 0.50 \text{ dollars per cupcake}
\]

### Conclusion:
The marginal revenue associated with selling cupcakes from 800 to 1,000 is **$0.50**.

Thus, the correct answer is **C. $0.50**.

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Do you want more details or have any other questions? Here are some related questions:

1. How do we calculate total revenue in other situations?
2. What is the difference between marginal revenue and marginal cost?
3. How does pricing affect total revenue in different demand scenarios?
4. Can marginal revenue ever be negative?
5. How does the elasticity of demand impact marginal revenue?

**Tip:** Marginal revenue generally decreases as the number of units sold increases if prices drop. This is due to the law of diminishing returns in pricing.

A bakery can sell 800 cupcakes at $3 each, or 1,000 cupcakes at $2.50 each. What is the marginal revenue associated with cupcakes 800 to 1,000?
A. $0.10
B. $2.50
C. $0.50
D. $0.20

Learn how to calculate the marginal revenue for cupcakes sold between 800 and 1,000 units. This problem involves revenue calculations, including changes in price and quantity. Detailed solution provided with formulas for students in Grades 9-12.

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