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Which of the Following Is True of the Marginal Revenue

Question 21

Multiple Choice

Which of the following is true of the marginal revenue earned by a non-price discriminating monopolist that charges a single price?


A) The marginal revenue earned by a monopoly is equal to the average cost it incurs.
B) The marginal revenue earned by a monopoly is more than the price of its product.
C) The marginal revenue earned by a monopoly is less than the price of its product.
D) The marginal revenue earned by a monopoly is equal to the average revenue it earns.
E) The marginal revenue earned by a monopoly is equal to the price of its product.

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