The marginal revenue of the eight-unit of output is found to be $4.20.
Marginal revenue may be defined as a central concept in microeconomics that describes the additional total revenue generated by increasing product sales by 1 unit. It may be characterized as the increase in revenue that results from the sale of one additional unit of output.
While marginal revenue can remain constant over a certain level of output, it follows from the law of diminishing returns and will eventually slow down as the output level increases.
Total Cost of producing 7 units =$5.00*7=$35.00.
Total Cost of producing 8 units =$4.90*8=$39.20
The marginal cost of eight units =Total Cost of producing 8 units-Total Cost of producing 7 units
∴The marginal cost of eight unit=$39.20-$35.00
The marginal cost of eight unit=$4.20.
Therefore, the marginal revenue of the eight-unit of output is found to be $4.20.
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