For a monopolist, if total revenue increases as output decreases, then marginal revenue is
A) equal to price.
B) zero.
C) positive.
D) negative.

Question

Quizplus · Accepted Answer

If total revenue increases as output decreases, it means that the reduction in revenue from selling fewer units is less than the increase in revenue per unit sold. This indicates that the marginal revenue, which is the additional revenue from selling one more unit, is negative.

For a Monopolist, If Total Revenue Increases as Output Decreases