The table below shows the quantity produced and the price set by a monopoly firm. Based on the table, the marginal revenue from the 14^th unit of output is _____.Table 8-1 A)$0.25 B)$46.00 C)$46.50 D)$49.75 E)$46.75

Question

Quizplus · Accepted Answer

Marginal revenue is the change in total revenue when one more unit of output is produced. 
Looking at the table, producing 14 units of output yields a total revenue of $650. Producing 15 units of output yields a total revenue of $697.50, which means the marginal revenue for the 15th unit is $47.50. 
Therefore, the marginal revenue for the 14th unit, which is the unit in question, would also be $47.50 minus the revenue from producing 14 units, which is $650. 
Marginal revenue = $47.50 - $650 = $46.50.

The Table Below Shows the Quantity Produced and the Price