Under imperfect competition, what happens to MR when TR is positive?

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KollegeApply · Accepted Answer

Decreases Explanation: Because the demand curve slopes downward in an imperfectly competitive market, a firm must lower its price in order to sell more units. Therefore: • It's still possible for Total Revenue (TR) to be positive. • However, for every extra unit sold, the Marginal Revenue (MR) falls. • While TR stays positive, MR may even go to zero or negative.

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