For a monopoly, marginal revenue is equal to
A) the price multiplied by the quantity sold.
B) the price of the product.
C) the amount people buy at a given price.
D) the change in total revenue brought about by a one-unit increase in quantity sold.
E) the amount people buy between two prices.

Question

Quizplus · Accepted Answer

Marginal revenue for a monopoly is the change in total revenue brought about by a one-unit increase in quantity sold. It is not equal to the price of the product or the quantity sold at a given price, as these are the demand curve and total revenue curve, respectively. Marginal revenue also does not refer to the amount people buy between two prices, as this is the quantity demanded at those prices.

For a Monopoly, Marginal Revenue Is Equal to