If Microsoft is a monopoly and currently charges prices where its demand is elastic, then Microsoft's marginal revenue is
A) undefined.
B) negative.
C) positive.
D) zero.
E) minimised.

Question

Quizplus · Accepted Answer

When demand is elastic, a decrease in price leads to a proportionally larger increase in quantity demanded, which increases total revenue. Therefore, marginal revenue is positive because each additional unit sold adds more to the total revenue than the last.

If Microsoft Is a Monopoly and Currently Charges Prices Where