Multiple choice

When marginal revenue becomes ____ then the total revenue of a firm is maximum.

  1. zero

  2. negative

  3. positive

  4. same
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Total revenue is maximized when marginal revenue (MR) reaches zero because adding one more unit neither increases nor decreases total revenue. When MR is positive, TR increases; when negative, TR decreases.

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