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Welcome to the Q&A for ECN/APEC 2010, where you can ask questions and receive answers from your fellow students, the TA, and your professor.

Please only ask questions about the material for the course. Try to create discussions about the material we see in class, instead of just thinking of economics in general (this is an introduction to microeconomics class, not a policy or government class).

For questions and discussions about course organization or other course related topics, come see us after class or during office hours.

Feel free to discuss quiz questions on the Q&A, but do not provide direct answers to quiz questions before the quiz's due date.

Practice quiz 13, Question 12

–2 votes
32 views

A monopolist increased output by 100 units but cut prices by $20 to sell this additional output, which drives the price down to  $1,000 per unit. What has to be TRUE about the marginal revenue of the 100th of these units?

the answer is MR is $2000

asked May 1 by canvas-e415876b4fe9a (251 points)

2 Answers

–1 vote
Its because the marginal revenue is found by 100 units multiplied by the price of $20
answered May 1 by canvas-23d18cde7cf42 (265 points)
100 x $20 = $2000
+1 vote

The answer was actually MR cannot be calculated with the information given. Because to find the MR, you need the total revenue to calculate which wasn't provided. 

 

answered May 1 by canvas-0beab539b2710 (387 points)
edited May 1 by canvas-0beab539b2710
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