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Which of the Following Is True of Marginal Revenue Earned

Question 26

Multiple Choice

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


A) Marginal revenue earned by a monopolist is equal to the average cost incurred by it.
B) Marginal revenue earned by a monopolist is more than the price of its product.
C) Marginal revenue earned by a monopolist is less than the price of its product.
D) Marginal revenue earned by a monopolist is equal to the average revenue earned by it.
E) Marginal revenue earned by a monopolist is equal to price of its product.

Correct Answer:

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