For a monopoly, marginal revenue is often less than the price it charges for its good.

Question

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A monopoly has the power to control the price of the good it sells, which means it can charge a higher price than a perfectly competitive market would allow. However, in order to sell more units, it may have to lower the price, which means the marginal revenue for each additional unit sold will be less than the price it charges. This is because the monopoly has to lower the price for all units, not just the additional one, in order to increase sales.

For a Monopoly, Marginal Revenue Is Often Less Than the Price