The following question are based on the following demand schedule for a monopolist:

-The marginal revenue associated with the sale of the third unit is
A) $390.
B) $130.
C) $110.
D) $10.
E) $3.

Question

The following question are based on the following demand schedule for a monopolist:
 
-The marginal revenue associated with the sale of the third unit is
A) $390. 
B) $130. 
C) $110. 
D) $10. 
E) $3.

Quizplus · Accepted Answer

To find the marginal revenue associated with the sale of the third unit, we need to look at the change in total revenue when the third unit is sold. From the demand schedule, we can see that the price for the third unit is $110, which means that the total revenue from selling the first three units is 2*$260 + $110 = $630.

The marginal revenue is the change in total revenue divided by the change in output. In this case, the change in output is one unit (going from selling 2 units to selling 3 units), so the marginal revenue is the difference between the total revenue from selling 3 units and the total revenue from selling 2 units, which is $630 - $520 = $110.

Therefore, the correct answer is C) $110.

The Following Question Are Based on the Following Demand Schedule