For a monopolist, a downward-sloping demand curve ensures that _____. A)P = AR B)P MR C)P

Question

For a monopolist, a downward-sloping demand curve ensures that _____.
A)P = AR
B)P> MR
C)P < MR
D)P = MC

Quizplus · Accepted Answer

A monopolist's downward-sloping demand curve means that to sell more units, the price must decrease. This leads to marginal revenue (MR) being less than the price (P) because the additional revenue generated by selling one more unit is less than the price at which that unit is sold, due to the need to lower the price on all units sold to sell that additional unit.

For a Monopolist, a Downward-Sloping Demand Curve Ensures That _____