When total revenue for a monopolist reaches its maximum value,marginal revenue is
A) zero.
B) equal to total revenue.
C) negative.
D) rising.
E) equal to the price.

Question

Quizplus · Accepted Answer

Marginal revenue is the additional revenue that a firm receives from selling one more unit of a good or service. When total revenue reaches its maximum, any additional unit sold would not increase total revenue but rather start to decrease it, indicating that the marginal revenue at the maximum total revenue point is zero.

When Total Revenue for a Monopolist Reaches Its Maximum Value,marginal