Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 10 - Pure Monopoly - Quick Quiz for Figure 10.4 - Page 201: 1

Answer

D. Gain in revenue from an extra unit of output is less than the price charged for that unit of output.

Work Step by Step

A monopoly's MR is made up of quantity and price effect. Because a monopoly must lower price on all the previous units it sold to sell an additional unit, the increase in revenue it gains from selling an additional unit is actually less than the price it charges.
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