(Table) Suppose a monopolist faces the demand schedule shown in the table. Marginal revenue for the second unit of output is
$\begin{array}{|c|c|}
\hline \begin{array}{c}
\text { Quantity } \
\text { Demanded }
\end{array} & \text { Price } \
\hline 1 & \$ 10 \
\hline 2 & \$ 8 \
\hline 3 & \$ 7 \
\hline 4 & \$ 5 \
\hline 5 & \$ 3 \
\hline 6 & \$ 2 \
\hline
\end{array}$
A) $8.
B) $21.
C) $6.
D) $2.

Question

Quizplus · Accepted Answer

Marginal revenue (MR) is the change in total revenue from selling one more unit. Selling the first unit brings in $10. Selling two units brings in $16 total ($8 each). The change in total revenue from selling the second unit instead of just one is $16 - $10 = $6.

(Table) Suppose a Monopolist Faces the Demand Schedule Shown in the Table