For a monopolist
A) marginal revenue is equal to price for all units being sold.
B) marginal revenue is less than price for all units being sold except the first unit.
C) marginal revenue is greater than price for all units being sold except for the first unit.
D) there is no relationship between marginal revenue and price.

Question

Quizplus · Accepted Answer

A monopolist faces a downward sloping demand curve, meaning that in order to sell more units, they must lower their price. This means that the marginal revenue they receive for each additional unit sold will be less than the price they sell it for, except for the first unit. Therefore, choice B is correct.

For a Monopolist