If marginal revenue on the tenth unit of output equals $4 for a non-discriminating,profit-maximizing monopolist,then price:
A) equals $4.
B) is less than $4.
C) is greater than $4.
D) must be equal to average total cost.

Question

Quizplus · Accepted Answer

For a non-discriminating monopolist, marginal revenue is less than the price. Therefore, if marginal revenue is $4, the price must be greater than $4.

If Marginal Revenue on the Tenth Unit of Output Equals