If output is positive, a monopolist's MR is:
A)equal to price.
B)greater than price.
C)zero.
D)less than price.

Question

Quizplus · Accepted Answer

In a monopolistic market, the marginal revenue (MR) is always less than the price because as a monopolist increases output, it must lower the price to sell additional units, which means the additional revenue gained from selling one more unit (MR) is less than the price at which the unit is sold.

If Output Is Positive, a Monopolist's MR Is