Table 14-6
A monopolist faces the following demand curve:

-Refer to Table 14-6.What is the marginal revenue from the sale of the 2nd unit?
A) $-3
B) $3
C) $9
D) $24

Question

Table 14-6
A monopolist faces the following demand curve:
 
-Refer to Table 14-6.What is the marginal revenue from the sale of the 2nd unit?
A) $-3 
B) $3 
C) $9 
D) $24

Quizplus · Accepted Answer

Marginal revenue is the change in total revenue from selling one more unit. If the total revenue from selling 1 unit is $15 and from selling 2 units is $24, the marginal revenue from the 2nd unit is $24 - $15 = $9.

Table 14-6 A Monopolist Faces the Following Demand Curve