For a monopoly, when demand is elastic, marginal revenue is
A)zero and total revenue is at its maximum.
B)positive and total revenue is falling.
C)positive and total revenue is rising.
D)negative and total revenue is rising.
E)negative and total revenue is falling.

Question

Quizplus · Accepted Answer

When demand is elastic, lowering the price increases the quantity sold by a proportion greater than the price decrease, leading to an increase in total revenue. Marginal revenue is positive in this scenario.

For a Monopoly, When Demand Is Elastic, Marginal Revenue Is