A natural gas monopoly currently sells 100 cubic feet of gas at $1.10 per cubic foot. To sell one more cubic foot, the natural gas company must lower the price of gas to $1.09. Which of the following best describes the marginal revenue of the 101st cubic foot of natural gas?
A) The marginal revenue equals the price, which is$1.09.
B) The marginal revenue equals the change in price, which is $ 0.01.
C) The marginal revenue is less than $1.09.
D) The marginal revenue is greater than $1.09.
E) The marginal revenue equals $1.10
Correct Answer:
Verified
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