When total revenue is increasing:Multiple Choicemarginal revenue may be either positive or negative.the demand curve is relatively inelastic.marginal revenue is positive.marginal revenue is negative
Question
When total revenue is increasing:Multiple Choicemarginal revenue may be either positive or negative.the demand curve is relatively inelastic.marginal revenue is positive.marginal revenue is negative
Solution 1
Marginal revenue is positive.
Solution 2
Marginal revenue is positive.
Here's why: Total revenue increases when the quantity sold increases. Marginal revenue is the additional revenue that a firm receives from selling one more unit of a good or service. If total revenue is increasing, it means that each additional unit sold is adding to the firm's revenue, so marginal revenue must be positive.
Similar Questions
The marginal revenue curve for a monopolist:Multiple Choiceis a straight, upward sloping curve.rises at first, reaches a maximum, and then declines.becomes negative when output increases beyond some particular level.is a straight line, parallel to the horizontal axis
If a profit-maximizing monopolist faces a downward-sloping market demand curve, itsGroup of answer choicesaverage revenue is less than the price of the product.marginal revenue is greater than the price of the product.marginal revenue is less than the price of the product.average revenue is less than marginal revenue.
What is the effect on total revenue if demand is inelastic and price rises?Multiple ChoiceTotal revenue will fall.Total revenue will rise.Total revenue may rise or fall depending on the size of the price increase.Total revenue will stay the same.
If a monopoly faces a demand curve that is downward-sloping, then marginal revenue will be which of the following?Group of answer choicesMust be less than priceMust be equal to priceMust be greater than priceIs not related to the price
Because competitive firms face a downward-sloping demand curve, their marginal revenue curve lies the demand curve. (Enter one word in each blank.)
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.