If a monopolist wishes to sell an additional unit of the good, then
A)it must raise its price to signal consumers that its product is now a more important part of their budget, and they will purchase more.
B)like a competitive firm, it can simply make more output available and not lower price.
C)it must lower price.
D)it can raise price and not worry that sales will decrease.
E)a and d

Question

Quizplus · Accepted Answer

Monopolists face a downward-sloping demand curve, meaning that to sell an additional unit, they must lower the price of all units sold. This is because the monopolist must reduce the price to make the additional unit attractive to consumers, unlike in perfect competition where the firm is a price taker and can sell additional units at the market price.

If a Monopolist Wishes to Sell an Additional Unit of the Good