Refer to the table shown, which shows the demand schedule for a product sold by a monopolist. Marginal revenue is negative: $$\begin{array} { | c | c | }
\hline\text { Price d product(\$)}&\text { Quantity demanded per year }\

\hline \$ 14 & 3 \
\hline \$ 12 & 4 \
\hline \$ 10 & 5 \
\hline \$ 8 & 6 \
\hline \$ 6 & 7 \
\hline

\end{array}$$

Question

Refer to the table shown, which shows the demand schedule for a product sold by a monopolist. Marginal revenue is negative: $$\begin{array} { | c | c | } 
\hline\text { Price d product(\$)}&\text { Quantity demanded per year }\

\hline \$ 14 & 3 \
\hline \$ 12 & 4 \
\hline \$ 10 & 5 \
\hline \$ 8 & 6 \
\hline \$ 6 & 7 \
\hline

\end{array}$$

Quizplus · Accepted Answer

Marginal revenue is negative when the price is below $10 because, in a monopolist's demand schedule, marginal revenue decreases as quantity increases. When the price drops below $10, the increase in quantity demanded leads to a decrease in total revenue, indicating negative marginal revenue.

Refer to the Table Shown, Which Shows the Demand Schedule