Exhibit 9-2 Demand and cost information for a monopoly
$$\begin{array} { | l | c | c | }
\hline \mathbf { Q } & \mathbf { P } & \mathbf { T C } \
\hline 0 & 40 & 10 \
1 & 30 & 15 \
2 & 20 & 25 \
3 & 10 & 40 \
4 & 0 & 60 \
\hline
\end{array}$$
-The marginal revenue of the second unit of output in Exhibit 9-2 is:
A) 10.
B) 20.
C) 30.
D) 40.
E) 60.

Question

Exhibit 9-2 Demand and cost information for a monopoly
$$\begin{array} { | l | c | c | } 
\hline \mathbf { Q } & \mathbf { P } & \mathbf { T C } \
\hline 0 & 40 & 10 \
1 & 30 & 15 \
2 & 20 & 25 \
3 & 10 & 40 \
4 & 0 & 60 \
\hline
\end{array}$$
-The marginal revenue of the second unit of output in Exhibit 9-2 is:
A) 10.
B) 20.
C) 30.
D) 40.
E) 60.

Quizplus · Accepted Answer

The marginal revenue (MR) is the change in total revenue from selling one more unit. Total revenue (TR) for 1 unit is $30 \times 1 = 30$ and for 2 units is $20 \times 2 = 40$. Thus, MR for the second unit is $40 - 30 = 10$.

Exhibit 9-2 Demand and Cost Information for a Monopoly -The Marginal Revenue of the Second Unit of Output in