The figure below shows the demand schedule and demand curve for a product produced by a single- price monopolist.
$\begin{array}{ll}
\text { Price (\$) } & \begin{array}{l}
\text { Quantity } \
\text { Demanded }
\end{array} \
\hline n & 5 \
7 & 6 \
6 & 7 \
5 & 8 \
4 & 9 \
3 & 10 \
2 & 11
\end{array}$
FIGURE 10- 1
-Refer to Figure 10- 1.Suppose this single- price monopolist is initially selling 5 units at $8 each and then reduces the price of the product to $6.By making this change,the firm is giving up revenue of on the original number of units sold and gaining revenue of _ on the additional units sold.Its marginal revenue is therefore .(All figures are dollars.)

Question

The figure below shows the demand schedule and demand curve for a product produced by a single- price monopolist.
 $\begin{array}{ll}
\text { Price (\$) } & \begin{array}{l}
\text { Quantity } \
\text { Demanded }
\end{array} \
\hline n & 5 \
7 & 6 \
6 & 7 \
5 & 8 \
4 & 9 \
3 & 10 \
2 & 11
\end{array}$
 FIGURE 10- 1
-Refer to Figure 10- 1.Suppose this single- price monopolist is initially selling 5 units at $8 each and then reduces the price of the product to $6.By making this change,the firm is giving up revenue of on the original number of units sold and gaining revenue of _ on the additional units sold.Its marginal revenue is therefore .(All figures are dollars.)

Quizplus · Accepted Answer

The firm gives up $10 in revenue on the original 5 units (5 units x $2 price decrease) and gains $12 on the additional units (2 additional units x $6 price). Therefore, the marginal revenue is $2.

The Figure Below Shows the Demand Schedule and Demand Curve