Asked by
Oscar Eduardo Nieto Espitia
on Nov 05, 2024
Verified
Stereo Sound Unlimited has a monopoly over the installation of surround sound systems. If Stereo Sound Unlimited's total revenue from installing 10 sound systems is $20,000 and its total revenue from installing 11 sound systems is $18,000, what is the marginal revenue of the eleventh sound system?
A) -$2,000
B) -$1,000
C) $2,000
D) $3,800
Marginal Revenue
The additional income earned from selling one more unit of a good or service.
Surround Sound Systems
Audio systems designed to create a more immersive sound environment by using multiple speakers around the listener.
Monopoly
A market structure where a single seller controls the entire market for a product or service, having significant market power.
- Identify conditions under which marginal revenue is positive, negative, or zero.
- Measure the supplementary revenue resulting from specific production levels.
Verified Answer
KC
Learning Objectives
- Identify conditions under which marginal revenue is positive, negative, or zero.
- Measure the supplementary revenue resulting from specific production levels.