For a Monopolist, the Reason That Marginal Revenue Is Less

question 248

Multiple Choice

For a monopolist, the reason that marginal revenue is less than price is

• A) because of the perfectly elastic demand curve that the monopolist faces.
• B) because the monopolist must lower the price of the good in order to sell an additional unit.
• C) because of the U-shaped average revenue curve.
• D) because of the lack of competition in the market.

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Definitions:

Ownership Interests

The rights and stake a person or entity has in property, including the rights to use, sell, or lease it.

Real Property

Land and anything permanently attached to it, such as buildings, in contrast to personal property, which is movable.

Subsurface

Referring to the area beneath the earth's surface, often related to underground water or mineral reserves.

Surface

The outermost layer or boundary of an object or material.