If a monopolist wants to increase the quantity sold from 5 5 units to 6 6 units, it cuts the price from $ 16 $16 to $ 14 $14. The marginal revenue = $ nothing . (Enter your response as a whole number.)
If a monopolist wants to increase the quantity sold from 5 units to 6 units and it cuts the price from $ 16 to $ 14
total revenue of 5 th unit=P*Q=5*16=80
TR(6)=6*14=84
MR(n)=(TR(n)-TR(p))/(n-p)
MR(n)= MR of n th unit of output
TR(n)=TR of n units of output
TR(p)=TR of p units of output
it is true for n>p
MR(6)=(84-80)/(6-5)=4
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if the question is
If a monopolist wants to increase the quantity sold from 5 5 units to 6 6 units, it cuts the price from $ 16 to $ 14
TR(55)=55*16=880
TR(66)=66*14=924
MR(66)=(924-880)/(66-55)=4
the MR is $4, it is same for both problems in thsi case but it is just a coinciance
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