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 101st unit?

Question

Quizplus · Accepted Answer

To find the monopolist's marginal revenue for the 101st unit, we need to look at the change in total revenue when the quantity increases from 100 to 101. The price for the 101st unit is $9, but selling that unit will also cause the price of all previous units to drop from $10 to $9. Thus, the change in total revenue is $9 - $10 = -$1. This means that the monopolist's marginal revenue for the 101st unit is -$1, which is equivalent to a decrease in revenue of $1. Therefore, the correct answer is C) -$6, as the decrease in revenue for selling six units (101-96) would be $6.

The Above Table Shows a Sample of Prices and the Quantity