The following table shows the quantities of a good sold by a monopolist at different prices.

-Refer to the table above.What is the marginal revenue of the monopolist when it sells 300 units of its product?
A) $1
B) $2
C) $3
D) $4

Question

The following table shows the quantities of a good sold by a monopolist at different prices.
 
-Refer to the table above.What is the marginal revenue of the monopolist when it sells 300 units of its product?
A) $1 
B) $2 
C) $3 
D) $4

Quizplus · Accepted Answer

Marginal revenue is the change in total revenue divided by the change in quantity sold. In this case, the monopolist sells 300 units of its product and earns a total revenue of $900. If the monopolist sells one more unit, it will earn a total revenue of $901. Therefore, the marginal revenue of the monopolist when it sells 300 units of its product is $1.

The Following Table Shows the Quantities of a Good Sold