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.

---

Definitions:

Excess Space

Excess space refers to the additional or unused space within a property or facility that exceeds the current needs of the occupants or users.

Materiality Constraint

An accounting principle that allows for the exclusion of insignificant financial information from reports because it would not impact decision-making.

Accounting Information

Data related to financial transactions and status of a business, used for analysis, decision making, and financial reporting.

Ending Retained Earnings

The amount of net income left over for the business after it has paid out dividends to its shareholders, captured at the close of an accounting period.