If a monopolist can sell 7 units when the price is R3 and 8 units when the price is R2, then marginal revenue of selling the eighth unit is equal to

Name: If a monopolist can sell 7 units when the price is R3 and 8 units when the price is R2, then marginal revenue of selling the eighth unit is equal to
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Quizplus · Accepted Answer

Marginal revenue is the change in total revenue from selling one more unit. Total revenue at 7 units is 7 * R3 = R21, and at 8 units is 8 * R2 = R16. The change in revenue is R16 - R21 = -R5.

If a Monopolist Can Sell 7 Units When the Price