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For a Monopolist, Marginal Revenue Is Less Than Demand Price

Question 63

Multiple Choice

For a monopolist, marginal revenue is less than demand price because:


A) the firm must take the market price as given.
B) the firm must raise price in order to sell additional units of output.
C) the firm must lower price in order to sell additional units of output.
D) the firm cannot raise price too much or additional firms will be attracted to the industry.

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