(Table: Demand and Total Cost) Look at the table Demand and Total Cost.Lenoia runs a natural monopoly producing electricity for a small mountain village.The table shows Lenoia's demand and total cost of producing electricity.The marginal revenue of the fourth unit of production is:
A)$200.
B)$250.
C)$450.
D)$500.

Question

(Table: Demand and Total Cost) Look at the table Demand and Total Cost.Lenoia runs a natural monopoly producing electricity for a small mountain village.The table shows Lenoia's demand and total cost of producing electricity.The marginal revenue of the fourth unit of production is:
A)$200. 
B)$250. 
C)$450. 
D)$500.

Quizplus · Accepted Answer

To determine marginal revenue, we need to look at the change in total revenue from producing one additional unit. In this case, we can see that the total revenue for producing 3 units is $750, and the total revenue for producing 4 units is $1000. The change in total revenue is $250, which means that the marginal revenue for the fourth unit is $250. Therefore, the answer is B.

(Table: Demand and Total Cost) Look at the Table Demand