Table 15-17
A monopolist faces the following demand curve:
-Refer to Table 15-17. Which of the following statements best describes the relationship between the price and the marginal revenue associated with values in the table?
A)The price and marginal revenue are the same.
B)The price is greater than or equal to the marginal revenue.
C)The price is less than or equal to the marginal revenue.
D)The relationship cannot be determined from the information given.

Question

Table 15-17
A monopolist faces the following demand curve: 
-Refer to Table 15-17. Which of the following statements best describes the relationship between the price and the marginal revenue associated with values in the table?
A)The price and marginal revenue are the same. 
B)The price is greater than or equal to the marginal revenue. 
C)The price is less than or equal to the marginal revenue. 
D)The relationship cannot be determined from the information given.

Quizplus · Accepted Answer

In a typical market structure like a monopoly, the price is greater than or equal to the marginal revenue because the firm must lower the price to sell additional units, causing marginal revenue to be less than the price.

Table 15-17 A Monopolist Faces the Following Demand Curve