Assuming no change in product demand, a pure monopolist
A)can increase price and increase sales simultaneously because it dominates the market.
B)adds an amount to total revenue that is equal to the price of incremental sales.
C)should produce in the range where marginal revenue is negative.
D)must lower price to increase sales.

Question

Quizplus · Accepted Answer

A pure monopolist must lower the price to increase sales because it faces a downward-sloping demand curve, meaning that to sell more units, it must reduce the price of its product.

Assuming No Change in Product Demand, a Pure Monopolist