For a profit-maximizing monopolist,the price of a product is:
A) always equal to marginal revenue.
B) always greater than marginal revenue.
C) always less than marginal revenue.
D) always equal to the average total cost of production.

Question

Quizplus · Accepted Answer

For a monopolist, the price is always greater than marginal revenue because the monopolist faces a downward-sloping demand curve, meaning they must lower the price to sell additional units, causing marginal revenue to be less than the price.

For a Profit-Maximizing Monopolist,the Price of a Product Is