For a single-price monopolist to sell one more unit of a good, it must
A) lower the price on just the last unit sold.
B) lower the price on all units sold.
C) raise the price on just the last unit sold.
D) raise the price on all units sold.

Question

Quizplus · Accepted Answer

A single-price monopolist must lower the price on all units sold to sell an additional unit because it faces a downward-sloping demand curve. This means that to increase quantity sold, the monopolist must reduce the price for all units, not just the last one.

For a Single-Price Monopolist to Sell One More Unit of a Good