When the monopoly's marginal revenue is positive, its
A)total revenue decreases with increases in quantity.
B)total revenue is at its maximum.
C)total revenue increases with increases in quantity.
D)elasticity of supply is less than 1.
E)elasticity of demand is less than 1.

Question

Quizplus · Accepted Answer

When a monopoly's marginal revenue is positive, it means that for each unit sold, the total revenue increases. Therefore, as the quantity sold increases, the total revenue also increases, making choice C the correct answer.

When the Monopoly's Marginal Revenue Is Positive, Its