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, its total revenue is $1,300. The marginal revenue of the third color printer sold is
A) $100.
B) $150.
C) $300.
D) $1,300.

Question

Quizplus · Accepted Answer

Marginal revenue is the additional revenue generated from selling one more unit of a good or service. In this case, selling the third printer increases total revenue from $1,000 to $1,300, so the marginal revenue of the third printer is $1,300 - $1,000 = $300.

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