When a monopolist sells two units of output its total revenue is $150. When it sells three units of output its total revenue, is $180. When the monopolist sells three units of output, the price per unit is
A) $50.
B) $60.
C) $75.
D) $90.

Question

Quizplus · Accepted Answer

When the monopolist increases sales from two to three units, total revenue increases from $150 to $180, indicating that the third unit is sold for $30 more ($180 - $150 = $30). Since total revenue for three units is $180, the price per unit when selling three units is $180 / 3 = $60.

When a Monopolist Sells Two Units of Output Its Total