If total revenue is increasing as output is rising,then
A)marginal revenue must be equal to zero.
B)marginal revenue must be greater than zero.
C)marginal revenue must be less than zero.
D)price must be increasing.
E)price must be constant.

Question

Quizplus · Accepted Answer

If total revenue is increasing as output is rising, it implies that the marginal revenue is positive. This is because the increase in the total revenue is due to the last unit of output, which is sold at a price higher than its marginal cost, thereby contributing positively to the marginal revenue. Therefore, option B is the correct answer.

If Total Revenue Is Increasing as Output Is Rising,then