Question

.Suppose a monopoly firm produces bicycles and can sell 10 bicycles per month at a price of $700 per bicycle. In order to increase sales by one bicycle per month, the monopolist must lower the price of its bicycles by $50 to $650 per bicycle. The marginal revenue of the 11th bicycle is
$150.

-$50.

$50.

$7,150.

Answer 1

Answer:

The answer is $150

Explanation:

Change in Total Revenue = Total Revenue – Revenue figure before the additional unit was sold

Marginal revenue  = (11*700) - (10*701)= $150