Question

a single-price monopolist can sell 4 units at price of $50 per unit and 5 units at a price of $45 per unit. the marginal revenue of the 5th unit is $______.

Answer 1

The monopolist's marginal revenue is the change in total revenue from selling one more unit. In this case, the monopolist's total revenue from selling 4 units is $50 * 4 = $200. The monopolist's total revenue from selling 5 units is $45 * 5 = $225. So the monopolist's marginal revenue from the 5th unit is $225 - $200 = $25.