Question

question 19 (1 point)
a monopoly firm can sell 200 units of output for $36.00 per unit. alternatively, it can sell 201 units of output for $35.50 per unit. what is the marginal revenue of the 201st unit of output?
$35.50
-$64.50
$64.50
-$35.50

Explanation:

Step1: Calculate total revenue for 200 units

Total revenue \(TR_1 = \text{Quantity}\times\text{Price}=200\times36 = 7200\)

Step2: Calculate total revenue for 201 units

Total revenue \(TR_2=201\times35.50 = 7135.5\)

Step3: Calculate marginal revenue

Marginal revenue \(MR=\Delta TR/\Delta Q=(TR_2 - TR_1)/(201 - 200)=(7135.5 - 7200)/1=- 64.5\)

Answer:

\(-\$64.50\)