A monopolist's price equals its ________ only when output is zero.
A) marginal revenue
B) marginal cost
C) total cost
D) total revenue

Question

Quizplus · Accepted Answer

A monopolist's price equals its marginal revenue only when output is zero because at zero output, no sales are made, and thus, the price at which the next unit could be sold (marginal revenue) is essentially the price of the product itself.

A Monopolist's Price Equals Its ________ Only When Output Is