When marginal revenue is positive,total revenue ________ when output increases and demand is ________.
A) decreases; elastic
B) decreases; inelastic
C) increases; elastic
D) increases; inelastic
E) does not change; unit elastic

Question

Quizplus · Accepted Answer

When marginal revenue is positive, total revenue increases as output increases, and this typically occurs when demand is elastic.

When Marginal Revenue Is Positive,total Revenue ________ When Output Increases