If the demand for its good or service is inelastic,a monopoly's
A)total revenue increases when the firm lowers its price.
B)total revenue is unchanged when the firm lowers its price.
C)marginal revenue is negative.
D)marginal revenue is equal to zero.
E)marginal revenue is positive.

Question

Quizplus · Accepted Answer

When demand is inelastic, lowering the price decreases total revenue, which implies that marginal revenue is negative.

If the Demand for Its Good or Service Is Inelastic,a