Assuming demand is linear, the shape of a monopolist's total revenue schedule is a
A) straight line passing through the origin.
B) straight line with negative slope.
C) curve from the origin with increasing slope.
D) curve from the origin with decreasing slope.

Question

Quizplus · Accepted Answer

Total revenue for a monopolist initially increases at a decreasing rate and eventually decreases, creating a curve with a decreasing slope from the origin. This is because, in a monopolistic market, to sell more units, the monopolist must lower the price, which affects the revenue from all units sold.

Assuming Demand Is Linear, the Shape of a Monopolist's Total