The marginal revenue of a monopolist is always lesser than the price of its good. It is so because the monopolist has to reduce its price to make more... Learn more about this topic: Monopolistic Competition |
A monopolist's marginal revenue is less than the price of its product because: (1) its demand curve is the market demand curve, so (2) to increase the amount sold, the monopolist must lower the price of its good for every unit it sells. (3) This cut in prices reduces revenue on ...
For a monopolist, both marginal revenue and demand are downward-sloping curves. Marginal revenue will always be less than demand for a given quantity. This is because a monopolist's demand curve is the same as its average revenue curve, and for a monopolist, both average and marginal revenue ...
Question: The marginal cost of a monopolist is constant and is R10. The marginal revenue curve is given as follows: MR = 100 - 2Q The profit-maximizing price is. Monopoly: A monopoly is the market structure in which only...
A. the revenue gain from the last unit sold is offset by a revenue loss on the units that previously had been sold at a higher price. B. the revenue gain from the last unit sold is offset by further gains in price on units not sold at all. C. total revenue always decreases as out...
Find the cost of increasing from 100 to 200 units if the marginal cost in rupees per unit is given by the function MC= 0.003x2−0.01x+2.5 View Solution f the demand function for a monopolist is given by x = 100 - 4p, the marginal revenue function is View Solution Knowledge Check ...
A monopolist will maximize profits by producing at the output level where marginal revenue equals marginal cost and charging a price on the demand curve that corresponds to the output rate. This will maximize profits. The goal of the monopolist is to maximize profits, not revenue (as suggested ...
The profit maximizing output level of a monopolist occurs where marginal revenue equals marginal cost. Marginal revenue is always less than price under imperfectly competitive markets because to sell an extra unit of output the firm must lower the price of all units, not just the marginal one.3...
Which of the following statements about a monopolist is least accurate() A. A profit-maximizing monopolist will expand output until marginal revenue equals marginal cost. B. A profit-maximizing monopolist will supply less of his product than the amount consistent with the conditions of ideal static...
Suppose we know that a monopolist is maximizing its profits. Which of the following must be true? The monopolist has: A.maximized its total revenue.B.set price equal to its average cost.C.maximized the difference between marginal revenue and marginal cost.D.equated marginal revenue and marginal...