Table 15-1
$$\begin{array} { | l | l | l | l | l | }
\hline \text { Qunatity } & \text { Price } & \begin{array} { l }
\text { Total } \
\text { revenue }
\end{array} & \begin{array} { l }
\text { Average } \
\text { revenue }
\end{array} & \begin{array} { l }
\text { Marginal } \
\text { revenue }
\end{array} \
\hline 1 & 47 & 47 & & \
\hline 2 & & 88 & 44 & 41 \
\hline 3 & 41 & & & \
\hline 4 & & & & 29 \
\hline 5 & 35 & & & 23 \
\hline 6 & & 192 & & \
\hline 7 & 29 & & & 11 \
\hline 8 & & & & 5 \
\hline 9 & & 207 & 23 & - 1 \
\hline 10 & 20 & 200 & & \
\hline
\end{array}$$
-Refer to Table 15-1.If the monopolist wants to maximise its revenue, how many units of its product should it sell?
A)one
B)six
C)eight
D)ten

Question

Table 15-1
 $$\begin{array} { | l | l | l | l | l | } 
\hline \text { Qunatity } & \text { Price } & \begin{array} { l } 
\text { Total } \
\text { revenue }
\end{array} & \begin{array} { l } 
\text { Average } \
\text { revenue }
\end{array} & \begin{array} { l } 
\text { Marginal } \
\text { revenue }
\end{array} \
\hline 1 & 47 & 47 & & \
\hline 2 & & 88 & 44 & 41 \
\hline 3 & 41 & & & \
\hline 4 & & & & 29 \
\hline 5 & 35 & & & 23 \
\hline 6 & & 192 & & \
\hline 7 & 29 & & & 11 \
\hline 8 & & & & 5 \
\hline 9 & & 207 & 23 & - 1 \
\hline 10 & 20 & 200 & & \
\hline
\end{array}$$
-Refer to Table 15-1.If the monopolist wants to maximise its revenue, how many units of its product should it sell?
A)one
B)six
C)eight
D)ten

Quizplus · Accepted Answer

To maximize revenue, the monopolist should sell the quantity of product at which marginal revenue becomes zero or negative, which is at 8 units, as indicated by the marginal revenue of 5 at 8 units and -1 at 9 units.

Table 15-1 -Refer to Table 15-1