When the addition to a monopolist's total profit is negative from selling another unit, then it follows that A) MR ATC. B) MR = MC. C) MR MC. D) MR

Question

When the addition to a monopolist's total profit is negative from selling another unit, then it follows that
A) MR > ATC.
B) MR = MC.
C) MR > MC.
D) MR < MC.

Quizplus · Accepted Answer

When a monopolist's total profit decreases from selling an additional unit, it means the marginal revenue (MR) from selling that unit is less than the marginal cost (MC) of producing it. This is because profit maximization occurs where MR = MC, and selling beyond this point (where MR < MC) leads to a decrease in total profit.

When the Addition to a Monopolist's Total Profit Is Negative