Refer to the table shown, which shows the demand schedule for a product sold by a monopolist. Marginal revenue is closest to zero: $$\begin{array}{l}
\begin{array} { | c | c | }
\hline \text { Price d product(\$)}&\text { Quantity demanded per year }\
\hline \$ 14 & 3 \
\hline \$ 12 & 4 \
\hline \$ 10 & 5 \
\hline \$ 8 & 6 \
\hline \$ 6 & 7 \
\hline
\end{array}
\end{array}$$
A) when price is $10.
B) when price is above $10.
C) when price is below $10.
D) for every price.

Question

Refer to the table shown, which shows the demand schedule for a product sold by a monopolist. Marginal revenue is closest to zero: $$\begin{array}{l}
\begin{array} { | c | c | } 
\hline \text { Price d product(\$)}&\text {  Quantity demanded per year }\ 
\hline \$ 14 & 3 \
\hline \$ 12 & 4 \
\hline \$ 10 & 5 \
\hline \$ 8 & 6 \
\hline \$ 6 & 7 \
\hline
\end{array}
\end{array}$$
A) when price is $10.
B) when price is above $10.
C) when price is below $10.
D) for every price.

Quizplus · Accepted Answer

Marginal revenue is closest to zero when the price is $10 because the change in total revenue from selling one more unit is minimal at this point.

Refer to the Table Shown, Which Shows the Demand Schedule