Under monopoly,the marginal benefit is always _____
A)less than the marginal cost.
B)more than the marginal cost.
C)the same as the marginal cost.
D)less than the total cost.
E)less than the average cost.

Question

Quizplus · Accepted Answer

In a monopoly, the marginal benefit, which is the additional revenue the firm receives from selling one more unit of a good or service, is typically more than the marginal cost, which is the cost of producing one more unit. This is because monopolies have market power that allows them to set prices above marginal costs, leading to higher profits.

Under Monopoly,the Marginal Benefit Is Always _____