If a Monopolist Charges the Same Price for All of the Units

question 105

Multiple Choice

If a monopolist charges the same price for all of the units of the good that it sells, then beyond the first unit sold

• A) P = MR because the firm maximizes profit.
• B) P = MR because the monopolist holds price constant.
• C) P < MR because the monopolist must decrease price on all units in order to sell another unit.
• D) P > MR because the monopolist must decrease price on all units in order to sell another unit.

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