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JAMB Economics 1985 Question 50

Question 50

Theory of Costs and Revenue

When total revenue is at a maximum, marginal revenue is

  1. A.constant
  2. B.negative
  3. C.zero
  4. D.positive
  5. E.maximum.
Show the answer and explanation

Answer: C (zero)

Explanation

TR rises while MR is positive and falls once MR is negative, so at its peak MR is zero.