The above table shows a sample of prices and the quantity sold by a monopolist.
-Refer to the table above. What is the monopolist's marginal revenue of the 98th unit?

Question

Quizplus · Accepted Answer

The monopolist's marginal revenue is equal to the change in total revenue divided by the change in quantity. In this case, the monopolist's total revenue is $196 and the monopolist's quantity is 98 units. If the monopolist sells one more unit, the monopolist's total revenue will increase by $2. Therefore, the monopolist's marginal revenue is $2.

The Above Table Shows a Sample of Prices and the Quantity