Ask Question
16 July, 11:24

Suppose a monopoly concrete contractor builds 20 driveways per month for $10,000 each. In order to increase sales to 21 driveways, the contractor must lower the price of driveways to $9,500. The marginal revenue of the 21st driveway is

+5
Answers (1)
  1. 16 July, 15:03
    0
    Answer: Marginal revenue is - $500.

    Explanation: The marginal revenue is calculated as the change in total revenue subtracted by the change in quantity.

    Total revenue is calculated by multiplying the price by the quantity:

    At a quantity of 20 driveways, the total revenue is = 20 * $10,000 = $200,000

    At a quantity of 21 driveways, the total revenue is = 21 * $9,500 = $199,500

    Marginal revenue = $199,500 - $200,000

    = - $500
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Suppose a monopoly concrete contractor builds 20 driveways per month for $10,000 each. In order to increase sales to 21 driveways, the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers