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The nondiscriminating pure monopolist must decrease price on all units of a product sold in order to sell more units. This explains why (Points : 3)
a) there are barriers to entry in pure monopoly.
b)a monopoly has a perfectly elastic demand curve.
c)marginal revenue is less than average revenue.
d)total revenues are greater than total costs at the profit-maximizing level of output.

Respuesta :

sandlee09

Answer:

c)marginal revenue is less than average revenue

Explanation:

According to my research marginal revenue is defined as the extra revenue that will be created by increasing product sales by a single unit. Usually marginal revenue is always equal to average revenue. This is not the case in a monopoly because the price changes based on how much is sold. As the price decreases and more products are sold this causes the marginal revenue to be less than the average revenue.

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