How does marginal revenue compare to price for a single-price monopoly?
What will be an ideal response?
Marginal revenue is less than price.
Economics
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A competitive equilibrium fails to be a Pareto Optimum with a distorting tax because
A) the consumer's budget constraint has an additional kink. B) the firm is no longer maximizing profits. C) the government wastes its revenue. D) the consumer faces a different effective wage than the firm.
Economics
The effect on short-run equilibrium output of a one-unit increase in expenditure is called:
A. the income-expenditure multiplier. B. Say's law. C. the marginal propensity to consume. D. average labor productivity.
Economics