Ask Question
27 September, 07:16

A monopolistic firm has a sales schedule such that it can sell 10 prefabricated garages per week at $10,000 each, but if it restricts its output to 9 per week it can sell these at $11,000 each. The marginal revenue of the tenth unit of sales per week is:A. - $1,000.

B. $9,000.

C. $10,000.

D. $1,000.

+2
Answers (1)
  1. 27 September, 09:11
    0
    option (D) $1,000

    Explanation:

    Data provided in the question:

    Sales when 10 prefabricated garages per week are sold = $10,000 each

    Sales when 9 prefabricated garages per week are sold = $11,000 each

    Now,

    Marginal revenue is given as Change in revenue with 1 unit change in production

    Thus,

    Marginal revenue = ($10,000 * 10) - ($11,000 * 9)

    = $100,000 - $99,000

    = $1,000

    Hence,

    The answer is option (D) $1,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A monopolistic firm has a sales schedule such that it can sell 10 prefabricated garages per week at $10,000 each, but if it restricts its ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers