A monopolist will always enlarge its revenues by selling more output.

Name: A monopolist will always enlarge its revenues by selling more output.
Brand: Quizplus
Rating: 4.9 (51 reviews)

Question

Quizplus · Accepted Answer

Unlike in a perfectly competitive market, a monopolist has market power and can influence the price of its products. As it increases its output, it may face diminishing marginal revenue and may have to lower its price, offsetting the gains from selling more units. Therefore, a monopolist may not always enlarge its revenues by selling more output.

A Monopolist Will Always Enlarge Its Revenues by Selling More