-The table above gives the demand for a monopolist's output. What is the marginal revenue when output is increased from 2 to 3 units?
A) $7
B) $18
C) $4
D) $6

Question

-The table above gives the demand for a monopolist's output. What is the marginal revenue when output is increased from 2 to 3 units?
A) $7 
B) $18 
C) $4 
D) $6

Quizplus · Accepted Answer

Marginal revenue (MR) is the change in total revenue from selling one more unit. When output increases from 2 to 3 units, total revenue changes from $36 to $40, an increase of $4. Hence, the marginal revenue is $4.

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