A Monopoly Firm Can Sell 150 Units of Output for $10

question 5

Multiple Choice

A monopoly firm can sell 150 units of output for $10 per unit. Alternatively, it can sell 151 units of output for $9.98 per unit. The marginal revenue of the 151st unit of output is

• A) -$6.98.
• B) -$0.02.
• C) $2.45.
• D) $6.98.