Asked by
Olivia Zierenberg
on Oct 12, 2024
Verified
Marginal revenue for a monopolist
A) decreases as price decreases because each unit of the good is being sold for a lower price.
B) increases as output increases because demand is inelastic.
C) is constant and equal to price.
D) increases as price decreases because more people are willing and able to purchase the good at a lower price.
Marginal Revenue
The additional revenue that a company earns from selling one more unit of a product or service.
- Master the concept of marginal revenue in the realm of monopolists and its consequence on the determination of prices and production volumes.
Verified Answer
JK
Learning Objectives
- Master the concept of marginal revenue in the realm of monopolists and its consequence on the determination of prices and production volumes.