Which of the following is true of marginal revenue for a monopolist that charges a single price? A)P = MR because there are no close substitutes for the monopolist's product. B)P MR because the monopolist must decrease price on all units sold in order to sell an additional unit. C)P

Question

Which of the following is true of marginal revenue for a monopolist that charges a single price?
A)P = MR because there are no close substitutes for the monopolist's product.
B)P > MR because the monopolist must decrease price on all units sold in order to sell an additional unit.
C)P < MR because the monopolist must decrease price on all units sold in order to sell an additional unit.
D)AR = MR because there are no close substitutes for the monopolist's product.
E)P = MR only at the profit-maximizing quantity.

Quizplus · Accepted Answer

The Answer of Which of the following is true of marginal revenue for a monopolist that charges a single price?
A)P = MR because there are no close substitutes for the monopolist's product.
B)P > MR because the monopolist must decrease price on all units sold in order to sell an additional unit.
C)P < MR because the monopolist must decrease price on all units sold in order to sell an additional unit.
D)AR = MR because there are no close substitutes for the monopolist's product.
E)P = MR only at the profit-maximizing quantity.

Which of the Following Is True of Marginal Revenue for a Monopolist