Asked by
Audreyana White
on Nov 05, 2024
Verified
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.
B) greater than the price of the 16th sound system.
C) less than the price of the 16th sound system.
D) Indeterminate from the given information.
Marginal Revenue
is the additional income received from selling one more unit of a product or service.
Surround Sound Systems
Audio systems designed to create a more immersive listening experience by using multiple speakers placed around a room to simulate a 3D sound environment.
Monopoly
A market structure characterized by a single seller offering a unique product or service with no close substitutes, leading to the ability to influence price.
- Assess the extra revenue accrued from distinct levels of output.
Verified Answer
JG
Learning Objectives
- Assess the extra revenue accrued from distinct levels of output.