A nondiscriminating monopolist will find that marginal revenue
A)exceeds average revenue or price.
B)is identical to price.
C)is sometimes greater and sometimes less than price.
D)is less than average revenue or price.

Question

Quizplus · Accepted Answer

A nondiscriminating monopolist's marginal revenue is always less than the price because as they sell more units, they must lower the price for all units sold to sell an additional unit, thus reducing the revenue gained from selling each additional unit.

A Nondiscriminating Monopolist Will Find That Marginal Revenue