A natural gas monopoly currently sells 100 cubic feet of gas at $1.10 per cubic foot. To sell one more cubic foot, the natural gas company must lower the price of gas to $1.09 . Which of the following best describes the marginal revenue of the 101st cubic foot of natural gas?
a. The marginal revenue equals the price, or $1.09
b. The marginal revenue equals the change in price, or $ 0.01.
c. The marginal revenue is less than $1.09.
d. The marginal revenue is greater than $1.09.
c
Economics
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Economics