This table represents the revenues faced by a monopolist.
Using the information in the table shown,the average revenue for this firm:
A)decreases as output increases.
B)increases as output increases.
C)remains constant regardless of level of output.
D)is maximized when total revenue is maximized.

Question

This table represents the revenues faced by a monopolist. 
Using the information in the table shown,the average revenue for this firm:
A)decreases as output increases. 
B)increases as output increases. 
C)remains constant regardless of level of output. 
D)is maximized when total revenue is maximized.

Quizplus · Accepted Answer

The average revenue for a monopolist is equal to total revenue divided by the quantity of output. Looking at the table, we can see that as output increases, the total revenue decreases. Therefore, the average revenue also decreases as output increases.

This Table Represents the Revenues Faced by a Monopolist