Suppose the accompanying table describes the demand for a good produced by monopolist.
$$\begin{array} { | c | c | }
\hline \text { Price } & \text { Quantity } \
\hline \$ 10 & 1 \
\hline \$ 9 & 2 \
\hline \$ 8 & 3 \
\hline \$ 7 & 4 \
\hline \$ 6 & 5 \
\hline \$ 5 & 6 \
\hline \$ 4 & 7 \
\hline
\end{array}$$ The monopolist's total revenue from selling 3 units is ________, and the monopolist's marginal revenue from selling the 3ʳᵈ unit is ________.
A)$28; 8
B)$24; 6
C)$52; 1
D)$24; 8

Question

Suppose the accompanying table describes the demand for a good produced by monopolist.  
$$\begin{array} { | c | c | } 
\hline \text { Price } & \text { Quantity } \
\hline \$ 10 & 1 \
\hline \$ 9 & 2 \
\hline \$ 8 & 3 \
\hline \$ 7 & 4 \
\hline \$ 6 & 5 \
\hline \$ 5 & 6 \
\hline \$ 4 & 7 \
\hline
\end{array}$$ The monopolist's total revenue from selling 3 units is ________, and the monopolist's marginal revenue from selling the 3ʳᵈ unit is ________.
A)$28; 8
B)$24; 6
C)$52; 1
D)$24; 8

Quizplus · Accepted Answer

Total revenue from selling 3 units is calculated by multiplying the price at which 3 units are sold ($8) by the quantity sold (3 units), which equals $24. Marginal revenue from selling the 3rd unit is the change in total revenue from selling the 2nd to the 3rd unit. The total revenue from selling 2 units is $18 (2 units * $9), and from 3 units is $24, so the marginal revenue for the 3rd unit is $24 - $18 = $6.

Suppose the Accompanying Table Describes the Demand for a Good