Exhibit 9-1 Monopolist's demand curve

-At an output of 100 units, marginal revenue for a monopolist with the demand curve shown in Exhibit 9-1 would be:
A) positive.
B) zero.
C) negative.
D) infinity.

Question

Exhibit 9-1 Monopolist's demand curve
​ 
-At an output of 100 units, marginal revenue for a monopolist with the demand curve shown in Exhibit 9-1 would be:
A) positive. 
B) zero. 
C) negative. 
D) infinity.

Quizplus · Accepted Answer

For a monopolist, marginal revenue is positive as long as the demand curve is downward sloping and the output level is less than the quantity that maximizes total revenue.

Exhibit 9-1 Monopolist's Demand Curve