If marginal revenue on the tenth unit of output equals $4 for a non-discriminating, profit-maximizing monopolist, then what is the price?
A) price is less than $4
B) price must be equal to average total cost
C) price is greater than $4
D) price equals $4

Question

Quizplus · Accepted Answer

For a non-discriminating monopolist, the price is always above marginal revenue due to the downward-sloping demand curve. Therefore, if the marginal revenue of the tenth unit is $4, the price of that unit must be higher.

If Marginal Revenue on the Tenth Unit of Output Equals