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Economics miscellaneous

  1. The marginal revenue of a monopolist is:
    1. more than price
    2. equal to price
    3. less than price
    4. less than marginal cost
Correct Option: C

A monopolist's marginal revenue is always less than or equal to the price of the good. Marginal revenue is the amount of revenue the firm receives for each additional unit of output. It is the difference between total revenue - price times quantity - at the new level of output and total revenue at the previous output (one unit less).



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