Refer to the information provided in Figure 13.3 below to answer the question(s) that follow. Figure 13.3
-Refer to Figure 13.3. This firm's marginal revenue will be positive at
A) prices above $20.
B) prices above $10.
C) all prices.
D) prices between $4 and $8.

Question

Refer to the information provided in Figure 13.3 below to answer the question(s) that follow.  Figure 13.3
-Refer to Figure 13.3. This firm's marginal revenue will be positive at
A) prices above $20. 
B) prices above $10. 
C) all prices. 
D) prices between $4 and $8.

Quizplus · Accepted Answer

Marginal revenue is positive when the price is above $10 because, in a typical downward-sloping demand curve, marginal revenue is positive when the price is above the midpoint of the demand curve.

Refer to the Information Provided in Figure 13