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Afina-wow [57]
3 years ago
13

If a monopolist is able to increase the amount of product she sells from 400 to 420 units by lowering the price of that product

from $50 to $45, her marginal revenue is: multiple choice $-55.
Business
1 answer:
elixir [45]3 years ago
4 0

Answer:

-$55

Explanation:

The computation of the marginal revenue is shown below:

As we know that

Total revenue = Price × Quantity

For 400 units, the total revenue is

= 400 × $50

= $20,000

And for 420, the total revenue is

= 420 × $45

= $18,900

Now the marginal revenue is

= ($18,900 - $20,000) ÷ (420 units - 400 units)

= -$55

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Answer:

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