When a monopoly increases output by one unit,
A)the change in revenue equals market price.
B)market price does not change.
C)only that unit must be sold for less than other units.
D)revenue for the firm decreases.
E)less must be charged for all units of output.

Question

Quizplus · Accepted Answer

In a monopoly, increasing output typically requires lowering the price for all units sold, not just the additional unit, due to the downward-sloping demand curve.

When a Monopoly Increases Output by One Unit