Strawberry,Inc.has a monopoly on the sale of a specialized smartphone.If it sells 9 of these smartphones its total revenue is $1,800,and if it sells 10 smartphones its total revenue is $1,950.The marginal revenue of the tenth smartphone sold is

Question

Quizplus · Accepted Answer

The marginal revenue is the additional revenue earned from selling one more unit. To find the marginal revenue of the 10th smartphone, we need to compare the total revenue of selling 10 smartphones with the total revenue of selling 9 smartphones.

Total revenue of selling 9 smartphones = $1,800 
Total revenue of selling 10 smartphones = $1,950

Marginal revenue of the 10th smartphone sold = Total revenue of selling 10 smartphones - Total revenue of selling 9 smartphones 
= $1,950 - $1,800 
= $150

Therefore, the marginal revenue of the tenth smartphone sold is $150, which is the option B.