The diagram below shows the demand curve facing a single-price monopolist. FIGURE 10-4
-Refer to Figure 10-4.What is the firm's marginal revenue per unit as it moves from point C to point D on the demand curve?

Question

The diagram below shows the demand curve facing a single-price monopolist.  FIGURE 10-4
-Refer to Figure 10-4.What is the firm's marginal revenue per unit as it moves from point C to point D on the demand curve?

Quizplus · Accepted Answer

Marginal revenue is the change in total revenue divided by the change in quantity sold. As the firm moves from point C to point D on the demand curve, the change in quantity sold is 10 units. The change in total revenue is $100 (10 units x $10 per unit). Therefore, the marginal revenue is $10.

The Diagram Below Shows the Demand Curve Facing a Single-Price