For a Monopolist, MR Is Always Less Than P Because

question 134

Multiple Choice

For a monopolist, MR is always less than P because:

• A) when a monopolist lowers the price to sell more units, it must lower the prices of all units sold.
• B) MR is always less than P regardless of what type of firm we are discussing.
• C) marginal revenue is always lower for the next unit sold.
• D) when a monopolist needs to sell more units, it must lower marginal revenue in order to do so.

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Definitions:

Economics of Collective Decision Making

The study of how decisions are made in groups, societies, or organizations where individual choices affect the collective.

Public Choice Analysis

A branch of economics that studies the decision-making processes of government bodies as well as the behavior of voters, politicians, and government officials.

James Buchanan

An American economist known for his work on public choice theory, which explains how political decision-making processes affect economic policies, and the recipient of the Nobel Memorial Prize in Economic Sciences in 1986.

Public Choice Analysis

A field of economics that studies how economic theory and methodologies apply to the public sector, analyzing government behavior and decision-making processes.