Marginal revenue is not equal to price for a monopolist because:
A. total revenue increases as output increases.
B. the monopolist must lower the price of all units in order to sell more.
C. the monopolist's demand curve is below its marginal revenue curve.
D. the monopolist sets price equal to marginal cost.
Answer: B
Economics
You might also like to view...
In the scenario above, as a result of increased advertising, Talbot's markup
A) decreases by $100. B) increases by $50. C) increases by $75. D) decreases by $60.
Economics
Assume the price of Advil increases. As a result, you decrease the quantity of Advil purchased each month and purchase more Tylenol. This is an example of the:
A. income effect. B. utility effect. C. consumption effect. D. substitution effect.
Economics