A monopolist can sell 10 toys per day for $10.00 each. To sell 11 toys per day, the price must be cut to $9.50. The marginal revenue of the 11th toy is

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The marginal revenue of the 11th toy is calculated by the total revenue difference between selling 11 toys and 10 toys, divided by the change in quantity sold. Selling 10 toys at $10 each gives $100. Selling 11 toys at $9.50 each gives $104.50. The difference in revenue is $4.50, which is the marginal revenue of the 11th toy.

A Monopolist Can Sell 10 Toys Per Day for $10