Which of the following is NOT consistent with a monopoly?
A) a downward-sloping demand curve
B) a U-shaped average total cost curve
C) a single seller
D) marginal revenue exceeds price

Question

Quizplus · Accepted Answer

In a monopoly, the price is always above marginal revenue due to the downward-sloping demand curve. This means that as a monopolist increases the quantity sold, the price for all units sold must decrease, leading to marginal revenue being less than the price.

Which of the Following Is NOT Consistent with a Monopoly