Marginal revenue in a monopoly is:
A)always greater than the price
B)always equal to the price
C)always smaller than the price
D)sometimes greater and sometimes smaller than the price

Question

Quizplus · Accepted Answer

In a monopoly, marginal revenue is always smaller than the price due to the downward-sloping demand curve. To sell additional units, the monopolist must lower the price, which applies to all units sold, thus making the marginal revenue less than the price.

Marginal Revenue in a Monopoly Is