For a monopolist, the price of the product:
A) equals the marginal revenue.
B) is less than the marginal revenue.
C) exceeds the marginal revenue.
D) equals the marginal cost.

Question

Quizplus · Accepted Answer

For a monopolist, the price exceeds the marginal revenue because the monopolist faces a downward-sloping demand curve, meaning they must lower the price to sell additional units, causing marginal revenue to be less than the price.

For a Monopolist, the Price of the Product