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.

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