A nondiscriminating monopolist will find that marginal revenue
A) exceeds average revenue or price.
B) is identical to price.
C) is sometimes greater and sometimes less than price.
D) is less than average revenue or price.

Question

Quizplus · Accepted Answer

A nondiscriminating monopolist faces a downward-sloping demand curve, meaning that to sell additional units, the monopolist must lower the price. Therefore, marginal revenue is less than the price or average revenue.

A Nondiscriminating Monopolist Will Find That Marginal Revenue