Table 14-9
Consider the following demand and cost information for a monopoly.

-Refer to Table 14-9.What is the marginal revenue of the 3rd unit?
A) $4
B) $12
C) $20
D) $28

Question

Table 14-9
Consider the following demand and cost information for a monopoly.
 
-Refer to Table 14-9.What is the marginal revenue of the 3rd unit?
A) $4 
B) $12 
C) $20 
D) $28

Quizplus · Accepted Answer

Marginal revenue is the change in total revenue from selling one more unit. If the total revenue from selling 2 units is $24 and from 3 units is $36, the marginal revenue of the 3rd unit is $36 - $24 = $12.

Table 14-9 Consider the Following Demand and Cost Information for a Monopoly