For a monopoly, marginal revenue for all units greater than one is always _______ than price because of the _______ effect.
A)lower; price
B)greater; price
C)greater; quantity
D)lower; quantity

Question

Quizplus · Accepted Answer

For a monopoly, marginal revenue for all units greater than one is always lower than price due to the price effect. This is because to sell more units, a monopolist must lower the price on all units sold, which decreases the revenue gained from selling additional units.

For a Monopoly, Marginal Revenue for All Units Greater Than