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Total revenue is in dollars and x is the number of units. Suppose that in a monopoly market, the demand function for a product is given by p = 400 - 0.2x where x is the number of units and p is the price in dollars. (a) Find the total revenue from the sale of 500 units. $ ______________ (b) Find the marginal revenue MR at 500 units. MR = $ _____________ Interpret this value. A-The 501st unit will bring in |MR| dollars more in revenue. B-The 501st unit will lose |MR| dollars more in revenue. C-The 501st unit will lose |MR| hundred dollars more in revenue. D-The 501st unit will bring in |MR| hundred dollars more in revenue. Incorrect: Your answer is incorrect. (c) Is more revenue expected from the 501st unit sold or from the 701st? Explain. The 701st unit will bring in $ ___________ more in revenue. Thus which the A- 501 or B- 701 unit will bring in more revenue?
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