For a monopolist, how does the marginal revenue from producing one more unit compare to the price of that unit?

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It is less than the price since the price effect dominates the output effect.It exceeds the price because the output effect is stronger than the price effect.It is higher than the price due to the price effect being stronger than the output effect.It falls below the price as the output effect is greater than the price effect.It equals the price because the price and output effects balance out.

Explanation

The marginal revenue for a monopolist is always less than the price of the product because when the firm increases output, the price effect (which lowers revenue on all units sold) outweighs the output effect (which increases revenue from selling more units). Therefore, marginal revenue lies below the price.