For a monopolist,the price of the product
A)always equals the marginal revenue.
B)is always less than the marginal revenue.
C)exceeds the marginal revenue.
D)always equals the marginal cost of the product.

Question

Quizplus · Accepted Answer

For a monopolist, the price of the product exceeds the marginal revenue because they have the power to set prices above marginal costs and marginal revenue due to the lack of competition. This is a characteristic feature of monopoly markets, where the firm faces a downward-sloping demand curve.

For a Monopolist,the Price of the Product