For a Monopolist, the Reason That Marginal Revenue Is Less

question 248

Multiple Choice

For a monopolist, the reason that marginal revenue is less than price is

• A) because of the perfectly elastic demand curve that the monopolist faces.
• B) because the monopolist must lower the price of the good in order to sell an additional unit.
• C) because of the U-shaped average revenue curve.
• D) because of the lack of competition in the market.

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