For a monopolist that does not price discriminate, economic profit is maximized in the short run at a price of $140. Marginal revenue at that output level is
A) equal to $140.
B) greater than $140.
C) less than $140.
D) less than marginal cost.
E) greater than average revenue.

Question

Quizplus · Accepted Answer

For a monopolist, marginal revenue is less than the price due to the downward-sloping demand curve. Thus, if the price is $140, marginal revenue must be less than $140.

For a Monopolist That Does Not Price Discriminate, Economic Profit