For a monopolist,after the first unit of output,marginal revenue is always:
A) Constant.
B) Increasing.
C) Less than price.
D) Greater than marginal cost.

Question

Quizplus · Accepted Answer

This is because a monopolist has the power to set the price of their product and faces a downward-sloping demand curve. Therefore, selling an additional unit of output will lead to a decrease in the price they can charge for all units sold, resulting in a marginal revenue that is less than the price.

For a Monopolist,after the First Unit of Output,marginal Revenue Is