Which of the following is true of marginal revenue for a monopolist that charges a single price?
A) P = MR because there are no close substitutes for the monopolist's product.
B) P MR because the monopolist must decrease price on all units sold in order to sell an additional unit.
C) P
D) P = MR only at the profit-maximizing quantity.

Question

Which of the following is true of marginal revenue for a monopolist that charges a single price?
A) P = MR because there are no close substitutes for the monopolist's product.
B) P > MR because the monopolist must decrease price on all units sold in order to sell an additional unit.
C) P
D) P = MR only at the profit-maximizing quantity.

Quizplus · Accepted Answer

The Answer of Which of the following is true of marginal revenue for a monopolist that charges a single price?
A) P = MR because there are no close substitutes for the monopolist's product.
B) P > MR because the monopolist must decrease price on all units sold in order to sell an additional unit.
C) P
D) P = MR only at the profit-maximizing quantity.

Which of the Following Is True of Marginal Revenue for a Monopolist