For a monopoly, marginal revenue for all units greater than one:
A)is always less than the price.
B)cannot be negative.
C)is zero when total profits are maximized.
D)is always greater than marginal cost.

Question

Quizplus · Accepted Answer

Marginal revenue for a monopoly is always less than the price for all units sold beyond the first one because the monopoly must lower the price on all units to sell an additional unit, thus reducing the revenue gained from previously sold units.

For a Monopoly, Marginal Revenue for All Units Greater Than