If total revenue falls when output increases,marginal revenue is
A) positive.
B) negative.
C) zero.
D) greater than total revenue.
E) elastic.

Question

Quizplus · Accepted Answer

When total revenue falls as output increases, it means that the additional revenue earned from selling one more unit (marginal revenue) is less than the price of the previous units sold. This can happen when there is a decrease in demand as output increases, leading to lower prices and lower marginal revenue. Therefore, the answer is B) negative.

If Total Revenue Falls When Output Increases,marginal Revenue Is