The following table shows the quantity of a good sold by a monopolist at differe

Question

The following table shows the quantity of a good sold by a monopolist at different prices. Quantity (units) 150 200 250 300 350 Price ($) 450 9) Refer to the table above. What is the marginal revenue of the monopolist when it sells 200 units of its product? A) $2 B) $5 C) $7 D) $9 10) Refer to the table above. What is the marginal revenue of the monopolist when it sells 300 units of its product? A) $1 B) $2 C) $3 D) $4 11) Refer to the table above. Which of the following statements is true of the monopolists marginal revenue? A) As the monopolist reduces the price of its product from $9 to $3, the marginal revenue decreases. B) As the monopolist reduces the price of its product from $9 to $3, the marginal revenue increases. C) As the monopolist reduces the price of its product from $9 to $3, the marginal revenue first increases then decreases. D) As the monopolist reduces the price of its product from $9 to $3, the marginal revenue first decreases then increases.

Explanation / Answer

TR=P*Q

MR of n th unit=(TR of n units -TR of p units)/(n-p)...................n>p

Q9
Answer
Option B
MR=5

Q10
Answer
Option A
MR=1

Q11
Option A
The MR is decreases

Q P TR MR 150 9 1350 200 8 1600 5 250 7 1750 3 300 6 1800 1 350 5 1750 -1 400 4 1600 -3 450 3 1350 -5

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