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 faces a downward-sloping demand curve, meaning that to sell more units, the price per unit must decrease. This is because, in a monopolistic market, the firm has complete control over the supply of the product but still faces the law of demand: as price decreases, quantity demanded increases. Choices A, B, and C do not accurately describe the behavior or outcomes for a pure monopolist in terms of pricing and sales strategy.

Assuming No Change in Product Demand, a Pure Monopolist