Exhibit 8-1 Monopolist's demand curve

-At an output of 100 units,marginal revenue for a monopolist with the demand curve shown in Exhibit 8-1 would be:
A) positive.
B) zero.
C) negative.
D) infinity.

Question

Exhibit 8-1 Monopolist's demand curve
 
-At an output of 100 units,marginal revenue for a monopolist with the demand curve shown in Exhibit 8-1 would be:
A) positive. 
B) zero. 
C) negative. 
D) infinity.

Quizplus · Accepted Answer

In a monopolist's demand curve, marginal revenue is positive as long as the price is above zero and the quantity is less than the point where total revenue is maximized.

Exhibit 8-1 Monopolist's Demand Curve