For a monopolist, average revenue:
A)is always equal to price.
B)equals price only at the profit maximizing quantity.
C)is always zero at the profit maximizing quantity.
D)is maximized when total revenues are maximized.

Question

Quizplus · Accepted Answer

Average revenue for a monopolist is the same as the price of the product because average revenue is calculated as total revenue divided by the quantity sold, which simplifies to the price per unit sold.

For a Monopolist, Average Revenue