To calculate the marginal revenue, we need to find the change in total revenue that results from selling one more unit of a product.

Step 1: Calculate the initial total revenue. This is done by multiplying the initial quantity by the initial price. So, 400 units * $50/unit = $20,000.

Step 2: Calculate the new total revenue after the price change. This is done by multiplying the new quantity by the new price. So, 420 units * $45/unit = $18,900.

Step 3: Find the change in total revenue. This is done by subtracting the initial total revenue from the new total revenue. So, $18,900 - $20,000 = -$1,100.

Step 4: Find the change in quantity. This is done by subtracting the initial quantity from the new quantity. So, 420 units - 400 units = 20 units.

Step 5: Finally, calculate the marginal revenue. This is done by dividing the change in total revenue by the change in quantity. So, -$1,100 / 20 units = -$55/unit.

So, the marginal revenue is -$55.

Question

To calculate the marginal revenue, we need to find the change in total revenue that results from selling one more unit of a product.

Step 1: Calculate the initial total revenue. This is done by multiplying the initial quantity by the initial price. So, 400 units * $50/unit = $20,000.

Step 2: Calculate the new total revenue after the price change. This is done by multiplying the new quantity by the new price. So, 420 units * $45/unit = $18,900.

Step 3: Find the change in total revenue. This is done by subtracting the initial total revenue from the new total revenue. So, $18,900 - $20,000 = -$1,100.

Step 4: Find the change in quantity. This is done by subtracting the initial quantity from the new quantity. So, 420 units - 400 units = 20 units.

Step 5: Finally, calculate the marginal revenue. This is done by dividing the change in total revenue by the change in quantity. So, -$1,100 / 20 units = -$55/unit.

So, the marginal revenue is -$55.

Knowee AI · Accepted Answer

To calculate the marginal revenue, we need to find the change in total revenue that results from selling one more unit of a product.

Step 1: Calculate the initial total revenue. This is done by multiplying the initial quantity by the initial price. So, 400 units * $50/unit = $20,000.

Step 2: Calculate the new total revenue after the price change. This is done by multiplying the new quantity by the new price. So, 420 units * $45/unit = $18,900.

Step 3: Find the change in total revenue. This is done by subtracting the initial total revenue from the new total revenue. So, $18,900 - $20,000 = -$1,100.

Step 4: Find the change in quantity. This is done by subtracting the initial quantity from the new quantity. So, 420 units - 400 units = 20 units.

Step 5: Finally, calculate the marginal revenue. This is done by dividing the change in total revenue by the change in quantity. So, -$1,100 / 20 units = -$55/unit.

So, the marginal revenue is -$55.

If a monopolist is able to increase the amount of product she sells from 400 to 420 units by lowering the price of that product from $50 to $45, her marginal revenue ismultiple choice$55.$−55.$1,100.$−1,100.

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