Table 9.1
$$\begin{array} { | c | c | c | c | }
\hline \text { Quantity } & \text { Price } ( \$ ) & \begin{array} { l }
\text { Total } \
\text { Revenue }
\end{array} & \begin{array} { l }
\text { Marginal } \
\text { Revenue }
\end{array} \
\hline 1 & 50 & 50 & - \
\hline 2 & 45 & 90 & 40 \
\hline 3 & 40 & & 30 \
\hline 4 & & 140 & 20 \
\hline 5 & 30 & 150 & \
\hline
\end{array}$$
-Refer to Table 9.1,which shows for a monopolist.Marginal revenue from selling the 5th unit is _____
A)$10.
B)$120.
C)$90.
D)$35.
E)$50.

Question

Table 9.1
 $$\begin{array} { | c | c | c | c | } 
\hline \text { Quantity } & \text { Price } ( \$ ) & \begin{array} { l } 
\text { Total } \
\text { Revenue }
\end{array} & \begin{array} { l } 
\text { Marginal } \
\text { Revenue }
\end{array} \
\hline 1 & 50 & 50 & - \
\hline 2 & 45 & 90 & 40 \
\hline 3 & 40 & & 30 \
\hline 4 & & 140 & 20 \
\hline 5 & 30 & 150 & \
\hline
\end{array}$$
-Refer to Table 9.1,which shows for a monopolist.Marginal revenue from selling the 5th unit is _____
A)$10.
B)$120.
C)$90.
D)$35.
E)$50.

Quizplus · Accepted Answer

Marginal revenue (MR) is the additional revenue that will be generated by increasing product sales by one unit. To find the MR for the 5th unit, subtract the total revenue (TR) at 4 units from the TR at 5 units. From the table, TR at 4 units is 140 and TR at 5 units is 150. Thus, MR for the 5th unit = 150 - 140 = $10.

Table 91 -Refer to Table 9