Assume a non-price discriminating monopolist can sell 45 units of a good for $ 1.50 each and can sell 46 units of that good for $ 1.45 each.The marginal revenue of the 46th unit is
A) $0.80.
B) $0.08.
C) -$0.08.
D) -$0.80.

Question

Quizplus · Accepted Answer

The marginal revenue (MR) of the 46th unit is calculated by the total revenue change when an additional unit is sold. Initially, selling 45 units at $1.50 each gives a total revenue of $67.50. Selling 46 units at $1.45 each gives a total revenue of $66.70. The change in total revenue from selling the 46th unit is $66.70 - $67.50 = -$0.80, indicating the marginal revenue of the 46th unit is -$0.80.

Assume a Non-Price Discriminating Monopolist Can Sell 45 Units of a Good