A single-price monopolist
A)must lower price on all previous units to sell an additional unit of output.
B)is a price taker.
C)finds that its marginal revenue and price are the same for the first unit of the good it sells.
D)necessarily faces a perfectly inelastic demand curve.
E)a and c

Question

Quizplus · Accepted Answer

A single-price monopolist must lower the price on all units to sell an additional unit, which means its marginal revenue is less than the price except for the first unit sold, where they are the same. This is because to sell more, the monopolist must lower the price for all units, not just the additional ones. This does not imply that the monopolist is a price taker or that the demand curve is perfectly inelastic.

A Single-Price Monopolist