In a pure monopoly market, how does the price compare to the marginal revenue?

Show Answers

The price exceeds the marginal revenueThe price is lower than the marginal revenueThere is no connection between themThey are identical

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.