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 negative at
A) prices below $10.
B) prices above $12.
C) all prices.
D) prices between $4 and $18.

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 negative at
A) prices below $10. 
B) prices above $12. 
C) all prices. 
D) prices between $4 and $18.

Quizplus · Accepted Answer

When prices fall below $10, the firm is likely to be operating in the inelastic portion of the demand curve, where a decrease in price leads to a decrease in total revenue, resulting in negative marginal revenue.

Refer to the Information Provided in Figure 13