For a monopolist, total revenue will:
A)initially increase and eventually decrease as output increases.
B)initially decrease and eventually increase as output increases.
C)always increase as output increases.
D)always decrease as output increases.

Question

Quizplus · Accepted Answer

For a monopolist, total revenue initially increases with output due to rising sales, but eventually decreases as the monopolist must lower the price to sell additional units, leading to a decrease in revenue per unit sold. This is depicted by the total revenue curve, which typically rises to a peak and then falls as output increases further.

For a Monopolist, Total Revenue Will