For a monopoly, when marginal revenue is zero:
A)profits are maximized.
B)total revenue is maximized.
C)marginal revenue is minimized.
D)marginal costs are minimized.

Question

Quizplus · Accepted Answer

When marginal revenue is zero, it means that any additional unit sold does not change the total revenue, indicating that total revenue is maximized at this point. This is a key concept in understanding the revenue maximization point for a monopoly.

For a Monopoly, When Marginal Revenue Is Zero