The diagram below shows total revenue for a single-price monopolist.
FIGURE 10-3
-Refer to Figure 10-3.The firmʹs marginal revenue at Q1 is

Question

The diagram below shows total revenue for a single-price monopolist.
  FIGURE 10-3
-Refer to Figure 10-3.The firmʹs marginal revenue at Q1 is

Quizplus · Accepted Answer

Marginal revenue is the change in total revenue from producing one additional unit of output. From the diagram, we can see that total revenue is increasing at a decreasing rate, which implies that marginal revenue is positive but falling. Therefore, the correct answer is C) positive but falling.

The Diagram Below Shows Total Revenue for a Single-Price Monopolist