English

Under monopoly with constant total revenue, what is the value of MR over the relevant range of output?

Advertisements
Advertisements

Question

Under monopoly with constant total revenue, what is the value of MR over the relevant range of output?

Options

  • Always positive

  • Always negative

  • Zero

  • Equal to price

MCQ
Advertisements

Solution

Zero

Explanation:

When TR remains the same as output increases, the addition to TR from an extra unit (MR) is zero.

shaalaa.com
  Is there an error in this question or solution?
Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×