For a monopolist, when the output effect is greater than the price effect, marginal revenue is
A)positive.
B)negative.
C)zero.
D)maximized.

Question

Quizplus · Accepted Answer

When the output effect (the increase in revenue from selling one more unit) is greater than the price effect (the decrease in revenue from lowering the price of all units sold), marginal revenue is positive. This means that the monopolist can increase their profit by producing and selling more units.

For a Monopolist, When the Output Effect Is Greater Than