Question

When a certain monopoly sets its price at $8 it sells 64 units. when the monopoly sets its price at $10 it sells 60 units. the marginal revenue for the firm over this range is?

Answer 1

22

Explanation:

TR1 = P1 x Q1 = 8 x 64 = 512

TR2 = P2 x Q2 = 10 x 60 = 600

MR = (TR2 – TR1)/(Q2 – Q1) = (600 – 512)/(64 – 60) = 22

Answer 2

For selling the 64 units for $8, a certain company earns $512. That is calculated by multiplying $8 and 64. On the other hand, selling 60 units for $10 will give them a revenue of $600. The marginal revenue of the firm over the range given is $512 to $600.