At any point where a monopolist's marginal revenue is positive, the downward-sloping, straight-line demand curve is:
A) perfectly elastic.
B) elastic.
C) unit elastic.
D) inelastic.

Question

Quizplus · Accepted Answer

When a monopolist's marginal revenue is positive, it means that the total revenue is increasing with an increase in quantity sold. This situation occurs when the demand curve is elastic, meaning that the percentage change in quantity demanded is greater than the percentage change in price.

At Any Point Where a Monopolist's Marginal Revenue Is Positive