When a monopolist's marginal profit is negative, then it follows that A) MR ATC. B) MR = MC. C) MR MC. D) MR

Name: When a monopolist's marginal profit is negative, then it follows that A) MR > ATC. B) MR = MC. C) MR > MC. D) MR < MC.
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Question

When a monopolist's marginal profit is negative, then it follows that
A) MR > ATC.
B) MR = MC.
C) MR > MC.
D) MR < MC.

Quizplus · Accepted Answer

When a monopolist's marginal profit is negative, it means that the additional revenue generated by selling one more unit (marginal revenue, MR) is less than the additional cost of producing that unit (marginal cost, MC). Therefore, MR < MC.

When a Monopolist's Marginal Profit Is Negative, Then It Follows