Marginal Revenue Steadily Declines as a Monopolist Tries to Increase

question 52

Multiple Choice

Marginal revenue steadily declines as a monopolist tries to increase the number of units sold because

• A) total revenue declines as additional units are sold.
• B) the demand curve shifts to the left.
• C) production costs fall as output rises.
• D) the greater the sales, the smaller the profit.
• E) to sell additional units, the firm must reduce the price of all the units it sells.

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