If a monopoly is operating along the portion of its demand curve where marginal revenue is positive, its
A) total revenue increases when price decreases.
B) total revenue decreases when price decreases.
C) total revenue remains the same when price decreases.
D) total revenue is zero.

Question

Quizplus · Accepted Answer

When marginal revenue is positive, it means that total revenue increases as the quantity sold increases, which typically occurs when the price decreases along the elastic portion of the demand curve.

If a Monopoly Is Operating Along the Portion of Its