In a monopoly, price is less than marginal revenue.

Question

Quizplus · Accepted Answer

In a monopoly, price is greater than marginal revenue. This is because a monopolist has the ability to control both the quantity and price of the good or service they are offering, and therefore can choose to set a higher price than the marginal revenue they would receive from selling one additional unit. As a result, the monopolist operates at a point where marginal revenue is less than price (MR < P).

In a Monopoly, Price Is Less Than Marginal Revenue