If a monopolist earns $5,000 when it sells 100 units of output and $5,025 when it sells 101 units of output, then the marginal revenue of the 101st unit is $25.

Name: If a monopolist earns $5,000 when it sells 100 units of output and $5,025 when it sells 101 units of output, then the marginal revenue of the 101st unit is $25.
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Question

Quizplus · Accepted Answer

The marginal revenue of the 101st unit is calculated by the increase in total revenue from selling one more unit, which is $5,025 - $5,000 = $25.

If a Monopolist Earns $5,000 When It Sells 100 Units