With No Price Discrimination, the Monopolist Sells Every Unit at the Same

question 66

Multiple Choice

With no price discrimination, the monopolist sells every unit at the same price. Therefore

• A) marginal revenue is equal to price.
• B) marginal revenue is equal to average revenue.
• C) price is greater than marginal revenue.
• D) Both a and b are correct.

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Definitions:

Variable Costs

Expenses that vary directly with the level of production or sales volume.

Production

Use of resources, such as people and machinery, to convert materials into finished goods and services.

Inflexible

Lacking the ability to adapt or change according to different situations, conditions, or demands; rigid in approach or structure.

Skimming Pricing

A pricing strategy where a new product is priced high initially to maximize profits from customers willing to pay more, before lowering the price over time.