A downward-sloping demand curve will ensure that _____ is TRUE for a monopoly. A)P = MR B)P MR C)P

Name: A downward-sloping demand curve will ensure that _____ is TRUE for a monopoly. A)P = MR B)P > MR C)P < MR D)P = MC
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Question

A downward-sloping demand curve will ensure that _____ is TRUE for a monopoly.
A)P = MR
B)P > MR
C)P < MR
D)P = MC

Quizplus · Accepted Answer

For a monopoly, the price (P) is always greater than marginal revenue (MR) because as they reduce the price to sell one more unit, the reduced price applies to all units sold, not just the additional unit. This results in a downward-sloping demand curve where P > MR.

A Downward-Sloping Demand Curve Will Ensure That _____ Is TRUE