Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 15 - Part V - Monopoly - Quick Check Multiple Choice - Page 324: 2

Answer

b) P > MR and MR = MC

Work Step by Step

For a monopolist, the marginal revenue equals the marginal cost, and the price of a good is greater than the marginal cost. Since the marginal revenue equals the marginal cost, we can also say the price of a good is greater than the marginal revenue.
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