For a monopolist facing inelastic demand, selling more makes MR
Anegative
Bexactly zero
Cabove price
Dpositive
Answer & Solution
Correct answer: A. negative
With inelastic demand, the price cut needed outweighs the extra units, so total revenue falls and MR is negative.
Keep practising Basic Differential and Integral Calculus
Browse all Basic Differential and Integral Calculus questions for CA Foundation, or explore more Quantitative Aptitude topics.
Related questions
For a straight line y = ax + b, the derivative dy/dx isThe derivative of ln(x^2 + 1) isWhat is d/dx of 5e^x?If f'(x) > 0 throughout an interval, then f isA global extremum of a function is taken overMaxima and minima are known together asAt a critical point where f'' is positive, the function has aThe function f(x) = x^3 - 3x has a local maximum at x =