Since price __________ for a monopoly firm, the profit-maximizing monopoly firm does not produce the quantity of output for which price equals marginal cost.
A)does not equal marginal revenue
B)does equal marginal revenue
C)is higher for a perfectly competitive firm than
D)is lower for a perfectly competitive firm than

Question

Quizplus · Accepted Answer

In a monopoly, price does not equal marginal revenue because the firm faces a downward-sloping demand curve, leading to a marginal revenue that is less than the price. This results in the firm not producing where price equals marginal cost.

Since Price __________ for a Monopoly Firm, the Profit-Maximizing Monopoly