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tester [92]
3 years ago
13

A monopolistic firm has a sales schedule such that it can sell 10 prefabricated garages per week at $10,000 each, but if it rest

ricts its output to 9 per week it can sell these at $11,000 each. The marginal revenue of the tenth unit of sales per week is:A. -$1,000.
B. $9,000.

C. $10,000.

D. $1,000.
Business
1 answer:
Wewaii [24]3 years ago
7 0

Answer:

option (D) $1,000

Explanation:

Data provided in the question:

Sales when 10 prefabricated garages per week are sold = $10,000 each

Sales when 9 prefabricated garages per week are sold = $11,000 each

Now,

Marginal revenue is given as Change in revenue with 1 unit change in production

Thus,

Marginal revenue = ( $10,000 × 10 ) - ( $11,000 × 9 )

= $100,000 - $99,000

= $1,000

Hence,

The answer is option (D) $1,000

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Answer:

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Explanation:

The contribution margin is what is left after subtracting the variable cost from the sales.

From there, the company pays their fixed cost and the rest is net income.

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Contribution Margin - Fixed Cost = Net Income

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X - 2,000,000 = 720,000\\X = 2,000,000 + 720,000\\X = 2,720,000

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Answer:

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Explanation:

Answer for the question:

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