At the point where the marginal revenue equals zero for a monopolist facing a straight-line demand curve, total revenue is:
A) greater than 1.
B) maximum.
C) less than 1.
D) equal to zero.

Question

Quizplus · Accepted Answer

At the point where the marginal revenue equals zero, the monopolist is producing the quantity at which total revenue is at a maximum. Therefore, the correct choice is B.

At the Point Where the Marginal Revenue Equals Zero for a Monopolist