Question 60 of 100
A monopolist makes self-cleaning jackets. At a price of
$100
each, it can sell 20 jackets. At a price of
$98
each, it can sell 21 jackets. Assume the monopolist cannot price discriminate.
When charging
$100
per jacket, total revenue is
$
When charging
$98
per jacket, total revenue is
$
So the marginal revenue of selling the 21 st jacket is
$
What is true about any firm facing a downward-sloping demand curve?
Marginal revenue is always
◻
equal to price.
less than price.
more than price.