A monopolist can sell 10 lunchboxes if he or she charges $10 per lunchbox and 11 lunchboxes if he or she charges $9.The MR from selling the 11th lunchbox is
A)−$1.
B)$1.
C)$9.
D)$99.

Question

Quizplus · Accepted Answer

The marginal revenue (MR) is the change in total revenue from selling one more unit. Selling 10 lunchboxes at $10 each gives $100 total revenue. Selling 11 lunchboxes at $9 each gives $99 total revenue. The change in revenue is $99 - $100 = -$1.

A Monopolist Can Sell 10 Lunchboxes If He or She