Suppose that a pure monopolist can sell 10 units of output at $5 per unit and 11 units at $4.80 per unit. For the monopolist to

Question

kicyunya [14]

2 years ago

11

Suppose that a pure monopolist can sell 10 units of output at $5 per unit and 11 units at $4.80 per unit. For the monopolist to

profitably produce and sell the eleventh unit of output, its marginal cost must be anywhere at or below

SAT

1 answer:

ivolga24 [154] · Answer 1 · 2023-04-09T11:28:41+03:00

The marginal revenue of this monopolist's 11th unit of output is; $2.80

<h3>How to find the Marginal Revenue?</h3>

Marginal revenue is defined as the amount that you gained after selling all your units at a certain price.

Revenue is different from profit, because profit has to incorporate the expenses incurred in order to produce the product. For total revenue, that would just represent the total sales of a firm or company. However, marginal revenue is the additional cost a consumer has to pay when he acquires an additional unit of the product. Thus, marginal revenue is the change of sales per unit product.

Formula for Marginal Revenue is;

Marginal Revenue = ΔRevenue/ΔNumber of units

Thus;

Marginal Revenue = [11($4.80) - 10($5)]/(11 - 10)

Marginal Revenue = $2.8 per unit

Read more about Marginal Revenue at; brainly.com/question/13444663

#SPJ1