Suppose that a monopoly computer chip maker increases production from 10 microchips to 11 microchips. If the market price declines from $30 per unit to $29 per unit, marginal revenue for the eleventh unit is:

$19

Explanation:

Marginal revenue is the change in revenue when production increases by one unit

Marginal revenue = change in total revenue / change in quantity produced

total revenue 1 = $30 x 10 = $300

Total revenue 2 = $29 x 11 = $319

change in total revenue = $319 - $3000 = $19

Change in quantity produced = 11 - 10 = 1

Marginal revenue = $19 / 1 = 19

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