For a monopoly, why is marginal revenue less than price? O a) If a monopoly wishes to increase sales, it must raise the price to all customers. The impact of the price effect alone causes marginal revenue to be less than price. O b) If a monopoly wishes to increase sales, it must lower the price to all customers. The impact of the quantity effect alone causes marginal revenue to be less than price. If a monopoly wishes to increase sales, it must lower the price to all customers. The marginal revenue will be less than the price because of the impact of the price effect working with the quantity effect. d) If a monopoly wishes to increase sales, it must raise the price to all customers. The impact of the price effect, working with the quantity effect, causes marginal revenue to be less than price. O e) If a monopoly wishes to increase sales, it must lower the price to all customers. The impact of the price effect alone causes marginal revenue to be less than price.
For a monopoly, why is marginal revenue less than price? O a) If a monopoly wishes to increase sales, it must raise the price to all customers. The impact of the price effect alone causes marginal revenue to be less than price. O b) If a monopoly wishes to increase sales, it must lower the price to all customers. The impact of the quantity effect alone causes marginal revenue to be less than price. If a monopoly wishes to increase sales, it must lower the price to all customers. The marginal revenue will be less than the price because of the impact of the price effect working with the quantity effect. d) If a monopoly wishes to increase sales, it must raise the price to all customers. The impact of the price effect, working with the quantity effect, causes marginal revenue to be less than price. O e) If a monopoly wishes to increase sales, it must lower the price to all customers. The impact of the price effect alone causes marginal revenue to be less than price.
Chapter14: Monopoly
Section: Chapter Questions
Problem 14.3P
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