How is marginal revenue for a monopolist computed
A)average revenue divided by quantity sold
B)average revenue times quantity divided by price
C)total revenue divided by quantity sold
D)change in total revenue divided by change in quantity sold

Question

Quizplus · Accepted Answer

Marginal revenue is the change in total revenue from selling one additional unit of a good or service. Therefore, it is computed as the change in total revenue divided by the change in quantity sold. Option D correctly reflects this calculation.

How Is Marginal Revenue for a Monopolist Computed