All of the following are true about a monopolist except:
A)Average and marginal revenues are not the same.
B)Marginal revenue is greater than price.
C)Marginal revenue decreases with increases in output.
D)Marginal revenue can be negative.

Question

Quizplus · Accepted Answer

Marginal revenue is always less than the price for a monopolist. This is because a monopolist has market power and can only sell additional units at a lower price, which decreases overall revenue.

All of the Following Are True About a Monopolist Except