The following table shows the total revenue and total cost for a monopolist at various levels of output.
Table 11-2 $$\begin{array} { | c | c | c | }
\hline \text { Output } & \text { Total Revenue } & \text { Total Cost } \
\hline 1 & 12 & 22 \
\hline 2 & 26 & 26 \
\hline 3 & 50 & 32 \
\hline 4 & 58 & 40 \
\hline 5 & 60 & 51 \
\hline 6 & 61 & 66 \
\hline 7 & 58 & 86 \
\hline 8 & 48 & 112 \
\hline 9 & 36 & 142 \
\hline
\end{array}$$
-What is the marginal revenue associated with the sale of the fifth unit in Table 11-2?
A)$2
B)-$2
C)$10
D)-$10

Question

The following table shows the total revenue and total cost for a monopolist at various levels of output.
Table 11-2 $$\begin{array} { | c | c | c | } 
\hline \text { Output } & \text { Total Revenue } & \text { Total Cost } \
\hline 1 & 12 & 22 \
\hline 2 & 26 & 26 \
\hline 3 & 50 & 32 \
\hline 4 & 58 & 40 \
\hline 5 & 60 & 51 \
\hline 6 & 61 & 66 \
\hline 7 & 58 & 86 \
\hline 8 & 48 & 112 \
\hline 9 & 36 & 142 \
\hline
\end{array}$$
-What is the marginal revenue associated with the sale of the fifth unit in Table 11-2?
A)$2
B)-$2
C)$10
D)-$10

Quizplus · Accepted Answer

Marginal revenue is the change in total revenue from selling one more unit. From 4 to 5 units, total revenue increases from $58 to $60, so the marginal revenue is $2.

The Following Table Shows the Total Revenue and Total Cost