For a single-price monopolist, marginal revenue falls faster than price (as output rises) because
A) the firm has no supply curve.
B) in order to sell additional units, the price must be lowered on all units.
C) the cost of producing extra units of output increases as production is increased.
D) profits are maximized when marginal cost equals marginal revenue.
E) none of the above — marginal revenue does not fall faster than price.
Ans: B) in order to sell additional units, the price must be lowered on all units.
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