For a Single-Price Monopolist,why Is Marginal Revenue Less Than Price

question 110

Multiple Choice

For a single-price monopolist,why is marginal revenue less than price?

• A) Because the firm is a price taker.
• B) To sell another unit, the price must be lowered.
• C) Demand is elastic when another unit is sold.
• D) Demand is inelastic when another unit is sold.
• E) The question is false because marginal revenue is always equal to price.

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Definitions:

Internal Locus

The belief that one has control over their own life and outcomes, rather than external forces having that control.

Control

The power to influence or direct people's behavior or the course of events.

Implicit Assumption

An unstated belief or premise that influences attitudes, actions, and decisions without explicit acknowledgment.

Behavioral Approach

A methodology focusing on understanding and modifying individuals' behaviors through studying their actions and reactions.