The figure below shows the demand schedule and demand curve for a product produced by a single- price monopolist.
$\begin{array}{ll}
\text { Price (\$) } & \begin{array}{l}
\text { Quantity } \
\text { Demanded }
\end{array} \
\hline 8 & 5 \
7 & 6 \
6 & 7 \
5 & 8 \
4 & 9 \
3 & 10 \
2 & 11
\end{array}$
FIGURE 10- 1
-Refer to Figure 10- 1.What is the lowest level of output at which marginal revenue becomes negative?

Question

The figure below shows the demand schedule and demand curve for a product produced by a single- price monopolist.
 $\begin{array}{ll}
\text { Price (\$) } & \begin{array}{l}
\text { Quantity } \
\text { Demanded }
\end{array} \
\hline 8 & 5 \
7 & 6 \
6 & 7 \
5 & 8 \
4 & 9 \
3 & 10 \
2 & 11
\end{array}$
 FIGURE 10- 1
-Refer to Figure 10- 1.What is the lowest level of output at which marginal revenue becomes negative?

Quizplus · Accepted Answer

Marginal revenue becomes negative when the change in total revenue from selling one more unit is negative. In Figure 10-1, this occurs at the 7th unit, where total revenue falls from $14 to $13.

The Figure Below Shows the Demand Schedule and Demand Curve