For a monopolist,the quantity effect:
A) is the increase in revenues from selling a greater quantity at a lower price.
B) is the decrease in revenues from selling a greater quantity at a lower price.
C) is always outweighed by the price effect.
D) always outweighs the price effect.

Question

Quizplus · Accepted Answer

The quantity effect refers to the increase in total revenue that results from selling more units, even if the price per unit is lower.

For a Monopolist,the Quantity Effect