Which of the Following Is True of Marginal Revenue for a Monopolist

question 195

Multiple Choice

Which of the following is true of marginal revenue for a monopolist that charges a single price?

• A)P = MR because there are no close substitutes for the monopolist's product.
• B)P > MR because the monopolist must decrease price on all units sold in order to sell an additional unit.
• C)P < MR because the monopolist must decrease price on all units sold in order to sell an additional unit.
• D)AR = MR because there are no close substitutes for the monopolist's product.
• E)P = MR only at the profit-maximizing quantity.

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