Voss Calculator Company has a monopoly on the sale of graphing calculators. If it sells two of these calculators its total revenue is $500, and if it sells three calculators its total revenue is $700. The marginal revenue of the third calculator sold is
A) $100.
B) $150.
C) $200.
D) $700.

Question

Quizplus · Accepted Answer

Marginal revenue is the additional revenue generated from selling one more unit. In this case, selling the third calculator increases total revenue from $500 to $700, a difference of $200. Therefore, the marginal revenue of the third calculator is $200.

Voss Calculator Company Has a Monopoly on the Sale of Graphing