The Nondiscriminating Pure Monopolist Must Decrease Price on All Units

question 11

Multiple Choice

The nondiscriminating pure monopolist must decrease price on all units of a product sold in order to sell more units. This explains why

• A) there are barriers to entry in pure monopoly.
• B) a monopoly has a perfectly elastic demand curve.
• C) marginal revenue is less than average revenue.
• D) total revenues are greater than total costs at the profit maximizing level of output.

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