Table 14-4
A monopolist faces the following demand curve:

-Refer to Table 14-4.If the monopolist produces 10 units,what is its marginal revenue?
A) $12.50
B) $5
C) -$5
D) -$12.50

Question

Table 14-4
A monopolist faces the following demand curve:
 
-Refer to Table 14-4.If the monopolist produces 10 units,what is its marginal revenue?
A) $12.50 
B) $5 
C) -$5 
D) -$12.50

Quizplus · Accepted Answer

To find the monopolist's marginal revenue, we need to look at the change in total revenue resulting from the production of one additional unit. As output increases from 9 to 10 units, total revenue decreases from $104 to $99, resulting in a change in revenue of -$5. Therefore, the marginal revenue of the monopolist producing 10 units is -$5.

Table 14-4 A Monopolist Faces the Following Demand Curve