When Marginal Revenue Is Zero for a Monopolist Facing a Downward-Sloping

question 14

Multiple Choice

When marginal revenue is zero for a monopolist facing a downward-sloping, straight-line demand curve, the price elasticity of demand is:

• A) greater than 1.
• B) equal to 1.
• C) less than 2.
• D) equal to zero.

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