With no price discrimination, the monopolist sells every unit at the same price. Therefore
A) marginal revenue is equal to price.
B) marginal revenue is equal to average revenue.
C) price is greater than marginal revenue.
D) Both a and b are correct.

Question

Quizplus · Accepted Answer

In a monopoly without price discrimination, the price is greater than marginal revenue because selling additional units requires lowering the price on all units sold, reducing the additional revenue gained from selling one more unit.

With No Price Discrimination, the Monopolist Sells Every Unit at the Same