For a monopolist,average revenues:
A) are always equal to price.
B) equal price only at the profit maximizing quantity.
C) are always zero at the profit maximizing quantity.
D) are maximized when total revenues are maximized.

Question

Quizplus · Accepted Answer

Average revenues refer to the revenue received per unit of output sold. As a monopolist has control over the price and output level, the average revenue will always be equal to the price charged by the monopolist. Therefore, the correct option is A as it is always true for a monopolist.

For a Monopolist,average Revenues