For a Monopolist, Marginal Revenue Is Less Than Demand Price

question 45

Multiple Choice

For a monopolist, marginal revenue is less than demand price because:

• A) the firm must take the market price as given.
• B) the firm must raise price in order to sell additional units of output.
• C) the firm must lower price in order to sell additional units of output.
• D) the firm cannot raise price too much or additional firms will be attracted to the industry.

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Definitions:

Carbon Atoms

The chemical element with atomic number 6, foundational in all organic compounds and essential to life's biochemical processes.

Body

Refers to the physical structure of an organism or any living entity, comprising systems that perform vital functions.

Living Organism

Any entity that exhibits the characteristics of life, such as growth, reproduction, responsiveness, and metabolism.

Hydrologic Cycle

The continuous cycle of water movement through the Earth's system, including processes such as evaporation, condensation, precipitation, and infiltration.