Question

Hi Phi Sound Unlimited has a monopoly over the installation of surround sound systems. Hi Phi Unlimited's total revenue from installing 15 sound systems is $30,000 and its total revenue from installing 18 sound systems is $33,000. The marginal revenue received from selling the 18th sound system is A) equal to the price of the 16th sound system.

Answer 1

Answer: $1000

Explanation:

You didn't give the options but let me help out.

From the question, we are informed that Hi Phi Unlimited's total revenue from installing 15 sound systems is $30,000 and its total revenue from installing 18 sound systems is $33,000.

The marginal revenue that is received from selling the 18th sound system would be calculated as:

=($33000 - $30000) / (18 - 15)

= $3000 / 3

= ,$1000