Show Stoppers is a monopoly provider of ticket services for the concerts and sporting events and their current service charge is $10.00. In order to attract one more customer, they have to lower their service charge to $9.50. Show Stoppers' marginal revenue of this additional customer is:

a. $9.50

b. greater than $9.50. c. less than $9.50. d. between $10.00 and $9.50.

Question

Trent Holmes

Business

21 December, 10:39

Show Stoppers is a monopoly provider of ticket services for the concerts and sporting events and their current service charge is $10.00. In order to attract one more customer, they have to lower their service charge to $9.50. Show Stoppers' marginal revenue of this additional customer is:

a. $9.50

b. greater than $9.50. c. less than $9.50. d. between $10.00 and $9.50.

+4

Answers (1)

Know the Answer?

Rodolfo Randall · Answer 1

9.50 dollars

Explanation:

The marginal revenue is the revenue generated for an additional sale.

In this case the new customer will generate an additional revenue equal to the service change to him. This amount is for 9.50 dollars. So, this is the marginal revenue for an additional sale.

The rest of the option are incorrect.