Refer to the following table that gives the demand facing a monopolist: $$\begin{array} { c c }
\text { Price } & \text { Quartity } \
\hline \$ 20 & 20 \
15 & 40 \
10 & 65 \
5 & 70
\end{array}$$ Demand is __________ between 65 and 70 units of output because marginal revenue in that range is ______.

Question

Refer to the following table that gives the demand facing a monopolist: $$\begin{array} { c c } 
\text { Price } & \text { Quartity } \
\hline \$ 20 & 20 \
15 & 40 \
10 & 65 \
5 & 70
\end{array}$$ Demand is __________ between 65 and 70 units of output because marginal revenue in that range is ______.

Quizplus · Accepted Answer

Marginal revenue becomes negative when the additional revenue from selling one more unit is less than the price at which the previous units were sold, indicating inelastic demand. This is because the total revenue decreases as more units are sold, which happens when the price decrease necessary to sell additional units leads to a proportionally larger decrease in total revenue.

Refer to the Following Table That Gives the Demand Facing Price Quartity $202015401065570\begin{array} { c c } \text { Price } & \text { Quartity } \\\hline \$ 20 & 20 \\15 & 40 \\10 & 65 \\5 & 70\end{array} Price $2015105​ Quartity 20406570​​

Refer to the Following Table That Gives the Demand Facing $\begin{array} { c c } \text { Price } & \text { Quartity } \\\hline \$ 20 & 20 \\15 & 40 \\10 & 65 \\5 & 70\end{array}$