If total revenue falls as more output is produced,
A)marginal revenue is negative
B)marginal revenue is positive
C)marginal cost is negative
D)average revenue is negative
E)total costs exceed total revenue

Question

Quizplus · Accepted Answer

If total revenue falls as more output is produced, it means that each additional unit sold is bringing in less revenue than the previous unit. Therefore, marginal revenue (the additional revenue generated by each additional unit sold) must be negative.

If Total Revenue Falls as More Output Is Produced