Question
A monopolistic manufacturer of puzzles has collected consumer data and has discovered that the 16th consumer's willingness to pay for a puzzle is $28, while
A monopolistic manufacturer of puzzles has collected consumer data and has discovered that the 16th consumer's willingness to pay for a puzzle is $28, while the 17th consumer's willingness to pay is $26.75. Suppose the firm is initially selling 16 puzzles and decides to increase output to 17 puzzles.
The firm will give up $_________in revenues on the puzzles it was already selling.
The firm will gain $_________in revenues on the new puzzle sold.
The marginal revenue for the 17th puzzle is $________. Include the negative sign, if applicable.
fill in the blanks
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