Which of the Following Best Explains Why a Monopolist's Marginal

question 123

Multiple Choice

Which of the following best explains why a monopolist's marginal revenue is less than the sale price?

• A) To sell more units, a monopolist must increase the price on all units sold.
• B) To sell more units, a monopolist must lower the price of some units that could otherwise have been sold at a higher price.
• C) When a firm has a monopoly, consumers have no choice other than to pay the price set by the monopolist.
• D) As a monopolist expands output, its average total cost declines.

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Definitions:

Units

Units refer to a measure or quantity of something, often used to quantify inventory, production, or sale items in business contexts.

Sales Commission

A form of payment to an employee or agent for completing a sale, typically calculated as a percentage of the sale price.

Sales Volume

The total quantity of products or services sold by a company within a specific period.

Units

A measurement for quantity, indicating the individual count or number of items, often used in production, inventory, and sales contexts.