Suppose the marginal revenue for a particular level of a monopolist's output is $40.This implies that _____
A)total revenue is increasing for this output range.
B)total revenue is decreasing, but positive, for this output range.
C)total revenue is zero for this output range.
D)total revenue remains constant for this output range.
E)total revenue is negative for this output range.

Question

Quizplus · Accepted Answer

Marginal revenue measures the change in total revenue due to a one-unit change in output. Therefore, if the marginal revenue is positive ($40 in this case), then an increase in output will result in an increase in total revenue. This implies that total revenue is increasing for this output range.

Suppose the Marginal Revenue for a Particular Level of a Monopolist's