The marginal revenue that a monopoly firm receives for selling X units of its product will...
The marginal revenue that a monopoly firm receives for selling X units of its product will be
Group of answer choices
less than the price per unit it receives from selling X units of its product
equal to the price per unit it receives from selling X units of its product
unlimited, since the monopoly firm can charge whatever price it wants for its product
completely unrelated to consumers' demand for its product
Homework Answers
Answer option A)
less than the price per unit it receives from selling X units of its product
In MONOPOLY, at eqm, MR = MC
we get eqm Q from this
& Price is found from the demand curve, corresponding to the eqm Q.
now as MR is steeper than demand curve, so eqm Price is higher than MR
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