The total revenue curve of a monopolist is at its maximum when marginal ________.
A) cost is zero
B) cost is positive
C) revenue is zero
D) revenue is positive

Question

Quizplus · Accepted Answer

Marginal revenue is equal to marginal cost at the profit-maximizing output level. Therefore, when the marginal revenue is zero, the monopolist has reached the point where producing one more unit of output will not increase revenue, and any further increase in output will decrease revenue. Thus, the total revenue curve of a monopolist is at its maximum when marginal revenue is zero.

The Total Revenue Curve of a Monopolist Is at Its