contestada

If a monopolistic firm is selling its 100th unit of output for $35, its marginal revenue: * 1 point A. may be either greater or less than $35.B. will also be $35.C. will be less than $35.D. will be greater than $35.

Respuesta :

jepessoa

Answer:

B) will also be $35.

Explanation:

Marginal revenue refers to the additional revenue that a firm will receive by selling one more unit of output. So marginal revenue must be equal to the selling price of the last unit sold, in this case $35.

When a monopolistic firm is in long run equilibrium, it will sell its products at a price that is higher than average total cost and marginal revenue equals marginal cost.

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