Use the following to answer question(s): Demand, Elasticity, and Total Revenue

-(Exhibit: Demand, Elasticity, and Total Revenue) At the level of output indicated by point A in Panel (a):
A) marginal revenue is zero.
B) average revenue is at its maximum.
C) total revenue is zero.
D) none of the above is true.

Question

Use the following to answer question(s): Demand, Elasticity, and Total Revenue
 
-(Exhibit: Demand, Elasticity, and Total Revenue) At the level of output indicated by point A in Panel (a):
A) marginal revenue is zero. 
B) average revenue is at its maximum. 
C) total revenue is zero. 
D) none of the above is true.

Quizplus · Accepted Answer

At point A, marginal revenue is zero because the slope of the total revenue curve is zero at that point.

Use the Following to Answer Question(s): Demand, Elasticity, and Total