Question

me permits). This way you won't waste your valuable time; all questions are worth the same points. ou can't stop and exit the exam; the meter wil stil count down. All questions must be answered in one sitting. ood luck! Question 18 Suppose that a pure monopolist can sell 20 units of output at $25 per unit and 21 units at $24 per unit. The marginal revenue of the 21st unit of output is: O $4.00. O $.50. O $99 O$504 Previous No new data to save. Last checked at 8:58pm a hp

Answer 1

Monopolist sell 20 units at $25 per unit . So, Total revenue= (20)(25)= $ 500.

And sell 21 units at $24 per unit. So , total revenue = (21)(24)= $ 504

The marginal revenue of the 21st unit of output is $(504-500)= $4 . Hence, option(A) is correct.