The following represents a portion of the demand schedule faced by a monopoly firm. $$\begin{array} { l c }
\text { Price } & \text { Qurantity } \
\$12 & 1 \
\$ 11 & 2 \
\$ 10 & 3 \
\$9 & 4
\end{array}$$ The marginal revenue of the third unit of output equals:
A)$12.
B)$10.
C)$8.
D)$1.

Question

The following represents a portion of the demand schedule faced by a monopoly firm. $$\begin{array} { l c } 
\text { Price } & \text { Qurantity } \
\$12 & 1 \
\$ 11 & 2 \
\$ 10 & 3 \
\$9 & 4
\end{array}$$ The marginal revenue of the third unit of output equals:
A)$12.
B)$10.
C)$8.
D)$1.

Quizplus · Accepted Answer

The marginal revenue is the change in total revenue from selling one more unit. Selling the third unit increases total revenue from $22 (2 units at $11 each) to $30 (3 units at $10 each), so the marginal revenue is $30 - $22 = $8.

The Following Represents a Portion of the Demand Schedule Faced Price Qurantity $121$112$103$94\begin{array} { l c } \text { Price } & \text { Qurantity } \\\$12 & 1 \\\$ 11 & 2 \\\$ 10 & 3 \\\$9 & 4\end{array} Price $12$11$10$9​ Qurantity 1234​

The Following Represents a Portion of the Demand Schedule Faced $\begin{array} { l c } \text { Price } & \text { Qurantity } \\\$12 & 1 \\\$ 11 & 2 \\\$ 10 & 3 \\\$9 & 4\end{array}$