Why is marginal revenue less than price for a monopolist?

1 answer

Answer

1002525

2026-04-30 11:35

+ Follow

Marginal revenue is less than price for a monopolist because in a monopoly market, the monopolist is the sole seller and has the power to set the price. To sell more units, the monopolist must lower the price, which reduces the revenue gained from each additional unit sold. This results in marginal revenue being less than the price.

ReportLike(0ShareFavorite

Copyright © 2026 eLLeNow.com All Rights Reserved.