If the marginal revenue from the tenth unit of output equals $4 for a non-discriminating, profit-maximizing monopolist and the marginal revenue from the ninth unit equals $6, then the price for the tenth unit is:
A)equal to $4.
B)is less than $4.
C)is greater than $4.
D)equal to $2.
E)equal to $6.

Question

Quizplus · Accepted Answer

For a non-discriminating monopolist, the price of each unit sold is higher than the marginal revenue for that unit. Since the marginal revenue from the tenth unit is $4, the price of the tenth unit must be greater than $4.

If the Marginal Revenue from the Tenth Unit of Output