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:________

a. $11.
b. $22.
c. $33.
d. $44.

Answer 1

Answer:

b. $22.

Explanation:

Calculation to determine what The marginal revenue for the firm over this range is

Marginal revenue=(60* $10) -(64*$8) / (64-60)

Marginal revenue=(60 * $10) -(64*$8) / 4

Marginal revenue=$600-$512/4

Marginal revenue=$88/4

Marginal revenue=$22

Therefore The marginal revenue for the firm over this range is $22