For a monopolist to sell an output level of 10 units, the price must be $8. MR at this output level will be A) $8 and

Name: For a monopolist to sell an output level of 10 units, the price must be $8. MR at this output level will be A)> $8 and $16.
Brand: Quizplus
Rating: 4.8 (43 reviews)

Question

For a monopolist to sell an output level of 10 units, the price must be $8. MR at this output level will be A)> $8 and < $16. B)< $8. C)= $8. D)> $16.

Quizplus · Accepted Answer

For a monopolist, the marginal revenue (MR) is always less than the price due to the downward sloping demand curve. Selling an additional unit requires lowering the price for all units sold, which makes MR less than the price.

For a Monopolist to Sell an Output Level of 10