A monopolist can sell 300 units of output for $45 per unit. Alternatively, it can sell 301 units of output for $44.60 per unit. The marginal revenue of the 301st unit of output is a. - $120.00. b. - $75.40. c. - $0.40. d. $75.40.

b. - $75.40.

Explanation:

Given;

Sale of 300 units of output for $45 per unit.

Sale of 301 units of output for $44.60

Difference in revenue earnings = 301 * 44.60 - 300 * 45

= 13424.6 - 13500

= - 75.40

The sale of 301 units and 300 units at $44.60 and $45 respectively results in a marginal revenue of $75.40 (drop).

b is the right option.