Which of the following best explains why marginal revenue for a ...

[lb_gilbert]

Which of the following best explains why marginal revenue for a monopolist is less than the sales price?
 a. To sell more units, the monopolist must reduce price on all units sold.
 b. As the monopolist expands output, the average total cost of production declines.
 c. The monopolist charges each consumer the highest possible price.
 d. When a firm has a monopoly, consumers have no choice other than to pay the price set by the monopolist.

Question 2

What is marginal cost?

[jordangronback]

Answer to Question 1

a

Answer to Question 2

Marginal cost is the rate of change in total variable cost. It is the increase in total variable cost for producing an extra unit of output. Marginal cost can be measured by the slope of the tangent to the total variable cost curve.

[lb_gilbert]

Thanks for the timely response, appreciate it

[gcook]

TYSM