A monopolist increased output by 100 units but cut prices by $20 to sell this additional output...

Question:

A monopolist increased output by 100 units but cut prices by {eq}\$20 {/eq} to sell this additional output at {eq}\$1,000 {/eq} per unit. What is true about marginal revenue?

A) MR totals {eq}\$2,000 {/eq}.

B) MR totals {eq}\$100,000 {/eq}.

C) MR totals {eq}-\$2,000 {/eq}.

D) MR cannot be calculated with the information given.

Marginal Revenue:

One way to define the marginal revenue is the change over and above the current total revenue of the business. A business maximizes profit by producing where marginal revenue MR equals marginal cost MC.

Answer and Explanation: 1

Become a Study.com member to unlock this answer!

View this answer

A monopolist increased output by 100 units but cut prices by $20 to sell this additional output at $1000 per unit. What is true about marginal...

See full answer below.


Learn more about this topic:

Loading...
Marginal Revenue: Definition & Equation

from

Chapter 2 / Lesson 13
5.8K

Learn about marginal revenue and understand how to use the marginal revenue formula. See how to calculate marginal revenue and the impact of price and marginal cost.


Related to this Question

Explore our homework questions and answers library