Asked by
Gabriel Ávila
on Oct 12, 2024Verified
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.
Marginal Revenue
The additional income received from selling one more unit of a good or service; it is a critical factor in decision-making for firms in competitive markets.
Total Revenue
The overall amount of money generated by a company from its business activities, usually from the sale of goods or services, before any costs or expenses are deducted.
Output Rising
A situation where the production of goods and services in an economy increases over a certain period.
- Detail the approach used by monopolies to determine the price and level of output that optimize their profit.
Verified Answer
UR
Learning Objectives
- Detail the approach used by monopolies to determine the price and level of output that optimize their profit.