If marginal revenue is equal to zero, then
A) total revenue is zero.
B) average revenue is zero.
C) total revenue is at a maximum or a minimum.
D) average revenue is at a maximum or a minimum.

Question

Quizplus · Accepted Answer

When marginal revenue equals zero, it indicates that total revenue has reached a point where it no longer increases with the sale of additional units, typically signifying a maximum point for total revenue in the context of profit-maximizing firms.

If Marginal Revenue Is Equal to Zero, Then