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

Question

Quizplus · Accepted Answer

At the output level where marginal revenue equals zero, the firm has maximized its total revenue, as any additional unit sold would decrease total revenue.

For a Monopoly, at the Level of Output Where Marginal