Which of the following is ALWAYS true for a single-price monopolist? A) P = MR B) P = elasticity of demand C) P MR E) None of the above answers is correct because none of them is ALWAYS true.

Question

Which of the following is ALWAYS true for a single-price monopolist?
A) P = MR
B) P = elasticity of demand
C) P < MR
D) P > MR
E) None of the above answers is correct because none of them is ALWAYS true.

Quizplus · Accepted Answer

For a single-price monopolist, the price (P) is always 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 ALWAYS True for a Single-Price