For a monopolist, the quantity effect:
A)is the increase in revenue from selling a greater quantity at a lower price.
B)is the decrease in revenue from selling a greater quantity at a lower price.
C)is always outweighed by the price effect.
D)always outweighs the price effect.

Question

Quizplus · Accepted Answer

The quantity effect for a monopolist refers to the increase in total revenue that results from selling an additional unit of output, even though the price might be lower. This effect captures the revenue gain from selling more units.

For a Monopolist, the Quantity Effect