Scenario: Mr. Olivander has a monopoly on supplying magic wands. The table below shows the demand schedule for magic wands per day.

-Refer to the scenario above.What is Mr.Olivander's marginal revenue when he sells three wands?
A) $55
B) $130
C) $30
D) $35

Question

Scenario: Mr. Olivander has a monopoly on supplying magic wands. The table below shows the demand schedule for magic wands per day.
 
-Refer to the scenario above.What is Mr.Olivander's marginal revenue when he sells three wands?
A) $55 
B) $130 
C) $30 
D) $35

Quizplus · Accepted Answer

To find the marginal revenue, we need to look at the change in total revenue when one additional unit is sold. 
When Mr. Olivander sells 2 wands, he earns a total revenue of $130. 
When he sells 3 wands, he earns a total revenue of $165. 
Therefore, the marginal revenue of selling the third wand is:
$165 - $130 = $35. 
So, the answer is D.