Asked by
Vereon Malone
on Nov 05, 2024
Verified
Hi Phi Sound Unlimited has a monopoly over the installation of surround sound systems. If Hi Phi Unlimitedʹs total revenue from installing 20 sound systems is $30,000 and its total revenue from installing 21 sound systems is $30,800, what is the marginal revenue of the twenty-first sound system?
A) -$1,500
B) -$700
C) $800
D) $1,467
Marginal Revenue
The financial gain a firm acquires from the sale of an extra unit of a product or service.
Surround Sound Systems
Audio systems designed to immerse the listener in a rich and directional sound experience by using multiple speakers placed around the environment.
Total Revenue
The total amount of money received by a company for goods sold or services provided during a certain period of time.
- Learn about the concept of marginal revenue and its role in the decision-making mechanisms of monopolies.
Verified Answer
CD
Learning Objectives
- Learn about the concept of marginal revenue and its role in the decision-making mechanisms of monopolies.