A pure monopolist is selling nine units at a price of $50. If the marginal revenue of the tenth unit is $30, then the

Question

Quizplus · Accepted Answer

In a monopoly, the price of the additional unit (tenth unit) is less than the price of the previous units due to the downward-sloping demand curve. The marginal revenue of $30 for the tenth unit indicates that the price must be lower than $50, and $48 is a plausible price that results in a marginal revenue of $30.

A Pure Monopolist Is Selling Nine Units at a Price