Suppose a monopolist faces the following demand curve.
The marginal revenue of the 35ᵗʰ unit of output is:
A)$20.
B)$10.
C)$0.
D)$−5.

Name: Suppose a monopolist faces the following demand curve. The marginal revenue of the 35ᵗʰ unit of output is: A)$20. B)$10. C)$0. D)$−5.
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Question

Suppose a monopolist faces the following demand curve.  
 The marginal revenue of the 35ᵗʰ unit of output is:
A)$20. 
B)$10. 
C)$0. 
D)$−5.

Quizplus · Accepted Answer

Given the demand curve, we know the monopolist's marginal revenue curve has a horizontal intercept of 35. Thus, the marginal revenue of the 35ᵗʰ unit is zero.

Suppose a Monopolist Faces the Following Demand Curve