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Cogswell Corporation is considering how to price their patented mega-cogs. It knows that if it prices each widget at $50 then they won't sell any widgets. A price of $45 brings a sale of only 1 unit. A price of $40 brings the a sale of 2 units. Finally, a price of $35 brings a sale of 3 units. The Marginal Revenue (MR) of the third unit is:
Select one:
a. $30
b. $25
c. $35
d. None of the above - I don't have a clue what Marginal Revenue is.
e. $40
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Must post first. After reading this week's materials, please respond to one or more of the following questions.
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