When a monopolist sells two units of output its total revenue is $600. When a monopolist sells three units of output its total revenue is $630. When the monopolist sells three units of output, the price per unit is
A) $210.
B) $230.
C) $300.
D) $630.

Question

Quizplus · Accepted Answer

When the monopolist increases sales from two to three units, total revenue increases from $600 to $630, indicating that the third unit is sold for $30 more. Therefore, the total revenue of $630 for three units means each unit is sold for $210 ($630/3).

When a Monopolist Sells Two Units of Output Its Total