A monopoly earns total revenue of $5,000 when it sells 500 units of output and total revenue of $5,400 when it sells 600 units of output. Thus, the marginal revenue of the 600th unit is $9.

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Simran Patel · Accepted Answer

Final Answer : False, Explanation :  The marginal revenue of the 600th unit is calculated by the change in total revenue divided by the change in quantity, which is ($5,400 - $5,000) / (600 - 500) = $400 / 100 = $4, not $9.

A monopoly earns total revenue of $5,000 when it sells 500 units of output and total revenue of $5,400 when it sells 600 units of output. Thus, the marginal revenue of the 600th unit is $9.

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