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- Subject
- Monopolyeconomics-mcqs › monopoly
- Published
- 30 May 2019
- Last updated
- 28 May 2026
In a pure monopoly market, how does the price compare to the marginal revenue?
Multiple choice question for Monopoly. Select an option, then review the explanation below.
Explanation
In a pure monopoly, the price charged by the firm is always higher than the marginal revenue because the monopolist must lower the price to sell additional units, causing marginal revenue to fall below price.
More Monopoly MCQs
Practice related questions from the same subject.
- 1.Which option best describes the concept of price discrimination?
- 2.In contrast to a perfectly competitive market, what is a monopolist more inclined to do?
- 3.What action should a monopolist take when marginal revenue is greater than marginal cost?
- 4.What is the likely impact on production costs if a natural monopoly is divided into several smaller companies by regulators?
- 5.What is a common outcome of public ownership in natural monopolies?