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A monopolist can sell 8 units for $22 each or 9 units for $21 each. What is the marginal revenue earned from selling the 9th unit?

A. $21
B. $13
C. $176
D. $189
E. "Your language is offensive!"

User Lilith
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1 Answer

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Final answer:

The marginal revenue earned from selling the 9th unit is $13, which is the difference between the total revenue from selling 9 units at $21 each and 8 units at $22 each.

Step-by-step explanation:

To calculate the marginal revenue earned from selling the 9th unit, we need to analyze the change in total revenue from selling one additional unit. When 8 units are sold at $22 each, the total revenue is $22 x 8 = $176. When 9 units are sold at $21 each, the total revenue is $21 x 9 = $189. The marginal revenue of the 9th unit is found by subtracting the total revenue at 8 units from the total revenue at 9 units.

MR = Total Revenue from 9 units - Total Revenue from 8 units

MR = $189 - $176

MR = $13

Therefore, the marginal revenue earned from selling the 9th unit is $13.

User Matthew Gertner
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