If Marginal Revenue on the Tenth Unit of Output Equals

question 43

Multiple Choice

If marginal revenue on the tenth unit of output equals $4 for a non-discriminating, profit-maximizing monopolist, then price:

• A)equals $4.
• B)is less than $4.
• C)is greater than $4.
• D)must be equal to average total cost.
• E)can be equal to, less than, or greater than $4.