A nondiscriminating pure monopolist finds that it can sell its 50th unit of output for $50. We can surmise that the marginal
A)cost of the 50th unit is also $50.
B)revenue of the 50th unit is also $50.
C)revenue of the 50th unit is less than $50.
D)revenue of the 50th unit is greater than $50.

Question

Quizplus · Accepted Answer

For a nondiscriminating monopolist, the marginal revenue of selling an additional unit is less than the price of that unit because to sell more units, the monopolist must lower the price on all units sold, not just the additional unit.

A Nondiscriminating Pure Monopolist Finds That It Can Sell Its