For a monopolist,total revenues will:

Question

Quizplus · Accepted Answer

A monopolist faces a downward sloping demand curve, meaning that as they increase their output, the price they can charge per unit decreases. However, as they increase their output, they are able to sell more units. Eventually, the decrease in price per unit outweighs the increase in the number of units sold, causing total revenues to begin to decrease. Thus, option A, where total revenues increase and eventually decrease as output increases, is the best choice.

For a Monopolist,total Revenues Will