-The table above gives the demand for a monopolist's output. What is the marginal revenue when output is increased from 5 to 6 units?
A) -$2
B) $18
C) $4
D) $3

Question

-The table above gives the demand for a monopolist's output. What is the marginal revenue when output is increased from 5 to 6 units?
A) -$2 
B) $18 
C) $4 
D) $3

Quizplus · Accepted Answer

Marginal revenue (MR) is the change in total revenue from selling one more unit. If the price drops from $17 to $15 when output increases from 5 to 6, the total revenue change is: (6 units * $15) - (5 units * $17) = $90 - $85 = $5. However, this $5 increase for the 6th unit also includes a $2 decrease for each of the first 5 units (from $17 to $15), totaling a $10 decrease. So, the MR is $5 - $10 = -$5, not -$2 as stated. There seems to be a mistake in my calculation or the provided choices. Based on the standard approach to calculating MR with given choices, none directly match the correct calculation process. Please ensure the details of the question, including prices and quantities, are accurate for a precise answer.

-The Table Above Gives the Demand for a Monopolist's Output