Narrbegin Exhibit 8.2 Demand and cost information for a monopoly
$$\begin{array} { | c | c | c | }
\hline \text { Quantity } & \text { Price } & \text { Tatal Cost } \
\hline 0 & 40 & 10 \
\hline 1 & 30 & 15 \
\hline 2 & 20 & 25 \
\hline 3 & 10 & 40 \
\hline 4 & 0 & 60 \
\hline
\end{array}$$
-The marginal revenue of the third unit of output in Exhibit 8.2 is:
A) -10.
B) 10.
C) 20.
D) 30.

Question

Narrbegin Exhibit 8.2 Demand and cost information for a monopoly
 $$\begin{array} { | c | c | c | } 
\hline \text { Quantity } & \text { Price } & \text { Tatal Cost } \
\hline 0 & 40 & 10 \
\hline 1 & 30 & 15 \
\hline 2 & 20 & 25 \
\hline 3 & 10 & 40 \
\hline 4 & 0 & 60 \
\hline
\end{array}$$ 
-The marginal revenue of the third unit of output in Exhibit 8.2 is:
A) -10.
B) 10.
C) 20.
D) 30.

Quizplus · Accepted Answer

Marginal revenue (MR) is the change in total revenue from selling one more unit. For the third unit, total revenue at 2 units is $2 \times 20 = 40$ and at 3 units is $3 \times 10 = 30$. The change in total revenue is $30 - 40 = -10$.

Narrbegin Exhibit 8 -The Marginal Revenue of the Third Unit of Output in \begin{array}