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Homework answers / question archive / Figure shows the demand for oil in a country, there is only one firm in the market for oil with monopoly power
Figure shows the demand for oil in a country, there is only one firm in the market for oil with monopoly power. What will be the change in revenue(in millions) in the firm that decides to decrease its production of oil from Q2 to Q1?
Computation of Change in Total Revenue:
Total Revenue = Price * Quantity
Total Revenue at Q2 = $80*45 = $3,600
Total Revenue at Q1= $100*30 = $3,000
Change in Total Revenue = $3,000- $3,600 = -$600
