To increase sales from 7 units to 8 units, a single-price monopolist must drop the price from $7 per unit to $6 per unit. What is marginal revenue in this range?
A)$48
B)$6
C)$1
D)-$1
E)$7

Question

Quizplus · Accepted Answer

Marginal revenue is the change in total revenue from selling one more unit. Total revenue at 7 units is 7*$7 = $49, and at 8 units is 8*$6 = $48. The change in total revenue is $48 - $49 = -$1.

To Increase Sales from 7 Units to 8 Units, a Single-Price