-The table above gives the demand for a monopolist's output. What is the marginal revenue of increasing production from 4 to 5 units?
A) $70
B) $14
C) $16
D) $6

Question

-The table above gives the demand for a monopolist's output. What is the marginal revenue of increasing production from 4 to 5 units?
A) $70 
B) $14 
C) $16 
D) $6

Quizplus · Accepted Answer

The marginal revenue is the change in total revenue from selling one more unit. If the price for 4 units is $70 and for 5 units is $56, the total revenue changes from $280 (4*$70) to $280 (5*$56), so the marginal revenue is $6.

-The Table Above Gives the Demand for a Monopolist's Output