All of the following statements,except one,are true about a monopolist.Which is the exception?
A)Its demand curve is downward-sloping.
B)Average revenue and price are the same.
C)Marginal revenue and price are the same.
D)Marginal revenue and marginal cost are equal at the profit maximizing output.

Question

Quizplus · Accepted Answer

In a monopoly, the marginal revenue is less than the price because the monopolist must lower the price on all units sold in order to sell more units. Therefore, marginal revenue is below the demand curve (which represents the price). So, C is the exception as it suggests that marginal revenue and price are the same.

All of the Following Statements,except One,are True About a Monopolist