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Question : The marginal revenue of a monopolist is 

Option 1: more than price .

Option 2: equal to price .

Option 3: less than  price .

Option 4: less than marginal cost .


Team Careers360 15th Jan, 2024
Answer (1)
Team Careers360 21st Jan, 2024

Correct Answer: less than  price .


Solution : The correct option is less than  price.

The marginal revenue in a monopolistic market is always less than the product's price. A monopolist is the only seller in the market, hence in order to sell more units, they must cut the price of every unit they sell, not just the extra one. Because of this, a monopolist's marginal revenue curve dips downward and lies below the demand curve.

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