XYZ Computer Company has a monopoly on the sale of a specialized color printer. If it sells two of these printers its total revenue is $1,000, and if it sells three color printers its total revenue is $1,400. The marginal revenue of the third color printer sold is
A) $200.
B) $300.
C) $400.
D) $1,300.

Question

Quizplus · Accepted Answer

The marginal revenue is the additional revenue from selling one more unit. Selling two printers generates $1,000, and selling three generates $1,400. Thus, the marginal revenue for the third printer is $1,400 - $1,000 = $400.

XYZ Computer Company Has a Monopoly on the Sale of a Specialized