XYZ Computer Company has a monopoly on the sale of a specialized color printer. If it sells two of these printers its total revenue is $1,000, and if it sells three color printers its total revenue is $1,600. The marginal revenue of the third color printer sold is
A) $200.
B) $300.
C) $600.
D) $1,300.

Question

Quizplus · Accepted Answer

The marginal revenue is the change in total revenue from selling one more unit. The total revenue from selling two printers is $1,000, and from selling three printers is $1,600. Therefore, the marginal revenue of the third printer is $1,600 - $1,000 = $600.

XYZ Computer Company Has a Monopoly on the Sale of a Specialized