If marginal revenue on the tenth unit of output equals $4 for a non-discriminating, profit-maximizing monopolist, then price:
A)equals $4.
B)is less than $4.
C)is greater than $4.
D)must be equal to average total cost.
E)can be equal to, less than, or greater than $4.

Question

Quizplus · Accepted Answer

For a non-discriminating monopolist, the price is greater than marginal revenue because the monopolist faces a downward-sloping demand curve and must lower the price to sell additional units.

If Marginal Revenue on the Tenth Unit of Output Equals