Which of the following is true for a single-price monopolist? A) P MR B) P

Name: Which of the following is true for a single-price monopolist? A) P > MR B) P < MR C) P = MR D) P = elasticity of demand
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Question

Which of the following is true for a single-price monopolist?
A) P > MR
B) P < MR
C) P = MR
D) P = elasticity of demand

Quizplus · Accepted Answer

For a single-price monopolist, the price (P) is greater than marginal revenue (MR) because the monopolist must lower the price to sell additional units, causing MR to be less than the price.

Which of the Following Is True for a Single-Price Monopolist