For a Single-Price Monopolist,why Is Marginal Revenue Less Than Price

question 110

Multiple Choice

For a single-price monopolist,why is marginal revenue less than price?

• A) Because the firm is a price taker.
• B) To sell another unit, the price must be lowered.
• C) Demand is elastic when another unit is sold.
• D) Demand is inelastic when another unit is sold.
• E) The question is false because marginal revenue is always equal to price.

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Definitions:

Cost-Benefit School

An economic approach that evaluates the outcomes of policies or projects by comparing their costs to their benefits, emphasizing efficiency.

Vulnerable School

An educational institution that is more susceptible to risks, such as safety threats or insufficient resources.

Jurisprudence

The study and theory of law, including the philosophies underlying legal systems.

Jurisdiction

The official power to make legal decisions and judgments, often defined by geographic territory or specific types of cases.