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Exhibit 9-2

-From the following demand schedule for a monopolist, what is the marginal revenue associated with the sale of the fourth unit?
A) $10
B) $30
C) $60
D) $240
E) marginal revenue cannot be determined from the information given

Question

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Exhibit 9-2
 
-From the following demand schedule for a monopolist, what is the marginal revenue associated with the sale of the fourth unit? 
A) $10 
B) $30 
C) $60 
D) $240 
E) marginal revenue cannot be determined from the information given

Quizplus · Accepted Answer

To find the marginal revenue associated with the sale of the fourth unit, we need to look at the change in total revenue when the fourth unit is sold. From the demand schedule given, we can see that the price of the fourth unit is $70 and the total revenue from selling 3 units is $180. When the fourth unit is sold, the total revenue becomes $210. Therefore, the marginal revenue of selling the fourth unit is $30 ($210 - $180).

NARRBEGIN: Exhibit 9-2 Exhibit 9-2