The marginal revenue of broccoli is 7 MR7 The market price o

The marginal revenue of broccoli is $7 (MR=$7). The market price of broccoli increases to $10. What is the new marginal revenue of broccoli?

Solution

MR=7$

Price increases to 10$

With given information,we can say if there is perfect competition, then P=MR

SO MR also rises to 10$

If there is monopoly in market,then P>MR

So MR will be less than 10$