Refer to the information provided in Table 13.3 below to answer the question(s) that follow.
Table 13.3
$$\begin{array} { | c | c | }
\hline \text { Price } ( \$ ) & \text { Quantity } \
\hline 4.00 & 100 \
\hline 3.50 & 200 \
\hline 3.00 & 300 \
\hline 2.50 & 400 \
\hline 2.00 & 500 \
\hline 1.50 & 600 \
\hline 1.00 & 700 \
\hline
\end{array}$$
-Refer to Table 13.3. If a monopoly faces the demand schedule given in the table, what is its marginal revenue from the 600th unit it sells?
A) -$1
B) $1
C) $1.50
D) $100

Question

Refer to the information provided in Table 13.3 below to answer the question(s) that follow.
Table 13.3
 $$\begin{array} { | c | c | } 
\hline \text { Price } ( \$ ) & \text { Quantity } \
\hline 4.00 & 100 \
\hline 3.50 & 200 \
\hline 3.00 & 300 \
\hline 2.50 & 400 \
\hline 2.00 & 500 \
\hline 1.50 & 600 \
\hline 1.00 & 700 \
\hline
\end{array}$$
-Refer to Table 13.3. If a monopoly faces the demand schedule given in the table, what is its marginal revenue from the 600th unit it sells?
A) -$1
B) $1
C) $1.50
D) $100

Quizplus · Accepted Answer

The marginal revenue from the 600th unit is calculated by the change in total revenue from selling one more unit. Selling 600 units at $1.50 each generates $900 in total revenue, while selling 500 units at $2.00 each generates $1000 in total revenue. The change in total revenue from selling the 600th unit (going from 500 to 600 units) is $900 - $1000 = -$100. However, since the question asks for the marginal revenue of just the 600th unit, we divide this change by the change in quantity (100 units), resulting in -$100 / 100 = -$1.

Refer to the Information Provided in Table 13 -Refer to Table 13