For a monopoly, at the level of output where marginal revenue equals zero, then the
A) firm is a price taker.
B) price elasticity of demand at this amount of output is zero.
C) firm has maximised total revenue.
D) firm earns no revenue.

Question

Quizplus · Accepted Answer

When a monopoly's marginal revenue equals zero, it means that any additional unit sold does not change the total revenue, indicating that the firm has maximized its total revenue at this point.

For a Monopoly, at the Level of Output Where Marginal