-The figure above shows a monopoly firm's demand curve. If the price and quantity of haircuts move from point t to point r, the monopoly's
A) total revenue will rise.
B) marginal revenue will decrease.
C) total revenue will remain the same.
D) total revenue will fall.

Question

-The figure above shows a monopoly firm's demand curve. If the price and quantity of haircuts move from point t to point r, the monopoly's
A) total revenue will rise. 
B) marginal revenue will decrease. 
C) total revenue will remain the same. 
D) total revenue will fall.

Quizplus · Accepted Answer

Moving from point t to point r on a demand curve for a monopoly implies a decrease in both price and quantity, which leads to a decrease in total revenue.

-The Figure Above Shows a Monopoly Firm's Demand Curve