A single-price monopoly can sell 10 units of its product at a price of $45 each but to sell 11 units,the monopoly must cut the price to $44.What is the marginal revenue of the extra unit sold?
A) $484
B) $450
C) $44
D) $34
E) -$1

Question

Quizplus · Accepted Answer

To sell 10 units at a price of $45, the total revenue would be 10*$45=$450. 
To sell 11 units, the monopoly must lower the price to $44. The total revenue from selling 11 units would be 11*$44=$484. 
Therefore, the marginal revenue from selling the 11th unit would be $484-$450=$34, which is option D.

A Single-Price Monopoly Can Sell 10 Units of Its Product