If a monopolist's price is $7 per unit when he sells 150 units of output,his total revenue will __________ if he sells 200 units.
A) increase
B) decrease
C) not change
D) either increase,decrease,or not change
E) increase or decrease

Question

Quizplus · Accepted Answer

The total revenue will depend on the price elasticity of demand. If the monopolist lowers the price to sell more units, total revenue could increase, decrease, or remain unchanged depending on how the quantity demanded responds to the price change.

If a Monopolist's Price Is $7 Per Unit When He