Asked by
Juanita Thomas
on Nov 05, 2024
Verified
Voss Calculator Company has a monopoly on the sale of graphing calculators. If it sells two of these calculators its total revenue is $500, and if it sells three calculators its total revenue is $700. The marginal revenue of the third calculator sold is
A) $100.
B) $150.
C) $200.
D) $700.
Total Revenue
The total amount of money received by a firm from selling goods or services before any costs or expenses are deducted.
- Familiarize yourself with the concept of marginal revenue and understand the technique for calculating it from a presented demand schedule.
- Familiarize oneself with the connection between marginal cost, average cost, and the pursuit of maximum profits in monopoly contexts.
Verified Answer
VM
Learning Objectives
- Familiarize yourself with the concept of marginal revenue and understand the technique for calculating it from a presented demand schedule.
- Familiarize oneself with the connection between marginal cost, average cost, and the pursuit of maximum profits in monopoly contexts.