-In the above figure, along which range would total revenue rise by lowering prices?
A) between point a and point b
B) between point c and point d
C) between point d and point e
D) below point e

Question

-In the above figure, along which range would total revenue rise by lowering prices?
A) between point a and point b 
B) between point c and point d 
C) between point d and point e 
D) below point e

Quizplus · Accepted Answer

Total revenue is maximized when marginal revenue equals marginal cost. In the figure, marginal revenue is negative between points a and b, so lowering prices would increase total revenue.

-In the Above Figure, Along Which Range Would Total Revenue