Suppose a monopoly can sell 10 units of output for $21.In order to sell 11 units of output,the price must fall to $20.What is the marginal revenue of the 11th unit?
A) $41
B) $20
C) $10
D) $1
E) $220

Question

Quizplus · Accepted Answer

The marginal revenue is the change in total revenue from selling one more unit. Selling 10 units at $21 gives $210, and selling 11 units at $20 gives $220. The marginal revenue for the 11th unit is $220 - $210 = $10.

Suppose a Monopoly Can Sell 10 Units of Output for $21.In