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

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DOMINICK RAJ WILLIAM A/L MICKEL THAMBIRAJAH · Accepted Answer

Final Answer : D, Explanation :  Marginal revenue is the change in total revenue resulting from the sale of one additional unit of output. In this case, the sale of the tenth unit of output increases total revenue by $1,000 (from $90,000 to $91,000). Therefore, the marginal revenue of the tenth unit of sales per week is $1,000.

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

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

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Learning Objectives

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