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Sagot :
The answer is $7 since Marginal revenue is the change in total income from 10 customers ($400) to 11 clients ($407).
How does a monopolist decide its profit-maximizing level of yield and how does it decide the cost that it charges?
The monopolist will select the profit-maximizing level of yield where MR = MC and at that point charge the cost for that amount of yield as decided by the advertised demand curve.
If that cost is over normal taking a toll, the monopolist gains positive benefits.
How a monopolist maximizes profits?
Because Sean, a sole commercial plane administrator in a little separated town, has no competition, he has total control of showcase cost of discussing travel in his little tone Reduced cost → increment in ticket sales, Monopoly maximizes benefit by choosing a sum of benefit in which minimal income rises to minimal fetched (MR=MC). Since Sean must decrease his cost to offer more units, he has a perfective competitive company incentive to offer a little amount than a perfective competitive company.
To know more about monopoly visit:
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