Exhibit 8-2 Demand and cost information for a monopoly $$\begin{array} { | c | c | c | }
\hline \mathbf { Q } & \mathbf { P } & \mathbf { T C } \
\hline 0 & 40 & 10 \
1 & 30 & 15 \
2 & 20 & 25 \
3 & 10 & 40 \
4 & 0 & 60 \
\hline
\end{array}$$ The marginal revenue of the second unit of output in Exhibit 8-2 is:

Question

Exhibit 8-2 Demand and cost information for a monopoly $$\begin{array} { | c | c | c | } 
\hline \mathbf { Q } & \mathbf { P } & \mathbf { T C } \
\hline 0 & 40 & 10 \
1 & 30 & 15 \
2 & 20 & 25 \
3 & 10 & 40 \
4 & 0 & 60 \
\hline
\end{array}$$ The marginal revenue of the second unit of output in Exhibit 8-2 is:

Quizplus · Accepted Answer

Marginal revenue (MR) is the change in total revenue from selling one more unit of a product. For the second unit of output, total revenue at Q=1 is $P \times Q = 30 \times 1 = 30$, and at Q=2, it's $20 \times 2 = 40$. The change in total revenue (MR) from selling the second unit is $40 - 30 = 10$.

Exhibit 8-2 Demand and Cost Information for a Monopoly The Marginal Revenue of the Second Unit of Output in