The graph below shows the demand curve for cable television

The graph below shows the demand curve for cable television. Assume that monopoly conditions apply What is the firm\'s total revenue when selling cable television to 6 houses? Number $ 72 13 12 Price () What is the firm\'s marginal revenue from selling cable television to the 13th house? Demand Number 5 6 12 13 Quantity (houses)

Solution

Req 1: Total revenue at 6 houses: Number of houses 6 Price per house 12 Total revenue at 6 houses: 72 Req 2: Total revenue at 13th house (13*5) 65 Total revenue at 12th house (12*6) 72 Marginal revenue from 13th house -7