Jiajian sells glass handcrafted upcycled glass necklaces at a craft fair on the weekends, and has a monopoly. When Jiajian prices the necklaces at $100 each, 5 necklaces sell each weekend. When Jiajian prices the necklaces at $75, he sells 6 necklaces.
A) What is Jiajian’s total revenue when he chooses to sell 5 necklaces (by pricing at $100)?
B) What is Jiajian’s total revenue when he chooses to sell 6 necklaces (by pricing at $75)?
C) What is the marginal revenue Jiajian receives from deciding to sell a 6th necklace?
D) The 6th necklace sells for a price of $75. Why is the marginal revenue from selling a 6th necklace so much lower than $75?