The diagram below shows total revenue for a single-price monopolist. FIGURE 10-3
-Refer to Figure 10-3.The firm's marginal revenue at Q₁ is

Question

The diagram below shows total revenue for a single-price monopolist. FIGURE 10-3 -Refer to Figure 10-3.The firm's marginal revenue at Q₁ is

Quizplus · Accepted Answer

Marginal revenue (MR) is the change in total revenue resulting from a one-unit increase in output. At point Q₁, the slope of the total revenue curve is downward sloping, which means that the MR is positive but falling. Therefore, the correct answer is C.

The Diagram Below Shows Total Revenue for a Single-Price Monopolist