The following table shows the demand facing an unregulated monopolist:

-Refer to the above information to answer this question.What is the value of marginal revenue at the output which maximizes the monopolist's total revenue?
A)$0.
B)$10.
C)$25.
D)$35.
E)$40.

Question

The following table shows the demand facing an unregulated monopolist:
 
-Refer to the above information to answer this question.What is the value of marginal revenue at the output which maximizes the monopolist's total revenue?
A)$0. 
B)$10. 
C)$25. 
D)$35. 
E)$40.

Quizplus · Accepted Answer

Marginal revenue equals $0 at the output level that maximizes total revenue for a monopolist, because this is the point where any additional unit sold would start to decrease total revenue.

The Following Table Shows the Demand Facing an Unregulated Monopolist