A monopoly firm can sell 150 units of output for $12.00 per unit.Alternatively,it can sell 151 units of output for $11.85 per unit.What is the marginal revenue of the 151st unit of output
A)-$11.85
B)-$10.65
C)$10.65
D)$11.85

Question

Quizplus · Accepted Answer

Marginal revenue is the change in total revenue resulting from the sale of one additional unit of output. In this case, the marginal revenue of the 151st unit of output is $10.65, which is the difference between the total revenue from selling 151 units ($11.85 x 151 = $1794.85) and the total revenue from selling 150 units ($12.00 x 150 = $1800.00).

A Monopoly Firm Can Sell 150 Units of Output for $12.00