When a monopolist increases the quantity that it sells, all else equal, total revenue increases, which is called the output effect.

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The output effect refers to the increase in total revenue that a monopolist experiences from selling additional units of a product, as the revenue from the sale of more units can outweigh the loss from selling each unit at a lower price, assuming demand is not perfectly inelastic.

When a Monopolist Increases the Quantity That It Sells, All