Table 15-6
A monopolist faces the following demand curve:
-Refer to Table 15-6. What is the marginal revenue from the sale of the 4th unit?

Question

Table 15-6
A monopolist faces the following demand curve: 
-Refer to Table 15-6. What is the marginal revenue from the sale of the 4th unit?

Quizplus · Accepted Answer

Marginal revenue is the change in total revenue from the sale of one additional unit. In this case, the marginal revenue from the sale of the 4th unit is $3, as the total revenue increases from $9 to $12 when the 4th unit is sold.

Table 15-6 A Monopolist Faces the Following Demand Curve