For which item is it sometimes meaningful for a monopoly to consider negative values
A)marginal revenue
B)average revenue
C)marginal cost
D)average total cost

Question

Quizplus · Accepted Answer

Marginal revenue can be negative when the demand curve is downward sloping. This means that as the monopoly produces more output, the price it can charge for each unit decreases. As a result, the marginal revenue from producing an additional unit of output can be negative.

For Which Item Is It Sometimes Meaningful for a Monopoly