When marginal revenue is zero:
A)profit is maximized.
B)total cost is minimized.
C)elasticity of demand is zero.
D)total revenue is maximized.

Name: When marginal revenue is zero: A)profit is maximized. B)total cost is minimized. C)elasticity of demand is zero. D)total revenue is maximized.
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Question

Quizplus · Accepted Answer

When marginal revenue is positive, total revenue is increasing and when marginal revenue is negative, total revenue is decreasing. Thus, total revenue is maximized when marginal revenue equals zero.

When Marginal Revenue Is Zero