A local cable company has a monopoly on cable service.If it sells 20 of the services its total revenue is $10,000 and if it sells 21 services its total revenue is $10,600.The marginal revenue of the 21st service sold is:

Question

Quizplus · Accepted Answer

The marginal revenue is the change in total revenue from selling one more unit. Here, the total revenue increases from $10,000 to $10,600 when the 21st service is sold, so the marginal revenue is $10,600 - $10,000 = $600.

A Local Cable Company Has a Monopoly on Cable Service