Question:

For a monopolist, marginal revenue is always less than price because

A.

as output increases, the price of all units must fall to sell the additional unit

B.

because at lower prices, profit margins fall

C.

in order to sell additional quantities, the additional units much be sold at a lower price

D.

because monopolist is a price maker

Answer» a. as output increases, the price of all units must fall to sell the additional unit