For a monopolist,
A)marginal revenue and price are constant as quantity increases
B)marginal revenue falls but price is constant as quantity increases
C)marginal revenue is constant but price falls as quantity increases
D)both marginal revenue and price fall as quantity increases, but price falls faster
E)both marginal revenue and price fall as quantity increases, but marginal revenue falls faster

Question

Quizplus · Accepted Answer

For a monopolist, marginal revenue falls faster than price as quantity increases because the monopolist must lower the price on all units sold to sell additional units, causing marginal revenue to decrease more rapidly than price.

For a Monopolist