When marginal revenue is positive,
A)demand is elastic.
B)marginal revenue is greater than price.
C)decreasing price will decrease total revenue.
D)both b and c
E)all of the above

Question

Quizplus · Accepted Answer

When marginal revenue is positive, it means that an additional unit sold increases total revenue, which occurs when demand is elastic. In this case, consumers are responsive enough to price decreases that the quantity sold increases by a proportion greater than the price decrease, thus increasing total revenue.

When Marginal Revenue Is Positive