Which of the following equations describes the relationship between market price (P),average revenue (AR),and marginal revenue (MR)for a non-discriminating monopolist? A)P = AR = MR B)P AR = MR C)P = AR MR D)P AR MR E)P = AR

Question

Which of the following equations describes the relationship between market price (P),average revenue (AR),and marginal revenue (MR)for a non-discriminating monopolist?
A)P = AR = MR
B)P > AR = MR
C)P = AR > MR
D)P > AR > MR
E)P = AR < MR

Quizplus · Accepted Answer

For a non-discriminating monopolist, the price (P) equals the average revenue (AR), but the marginal revenue (MR) is less than both. This is because, to sell an additional unit, the monopolist must lower the price on all units sold, which decreases MR compared to AR and P.

Which of the Following Equations Describes the Relationship Between Market