In a monopoly, marginal revenue is:
A)equal to AR
B)less than AR
C)more than AR
D)initially less than AR then more than AR

Name: In a monopoly, marginal revenue is: A)equal to AR B)less than AR C)more than AR D)initially less than AR then more than AR
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Quizplus · Accepted Answer

In a monopoly, marginal revenue is less than average revenue (AR) because as a monopolist increases output, it must lower the price to sell additional units, which causes marginal revenue to fall below average revenue.

In a Monopoly, Marginal Revenue Is