If a monopoly faces a demand curve that is downward-sloping, then marginal revenue will be which of the following?Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.aMust be less than pricebMust be equal to pricecMust be greater than pricedIs not related to the price

The correct answer is a) Must be less than price.

Here's why:

1. In a monopoly, the firm is the only seller in the market, and thus, it faces the market demand curve, which is downward sloping. This means that in order to sell more units of a good, the monopolist must lower the price.

2. Marginal revenue (MR) is the additional revenue that a firm receives from selling one more unit of a good. It can be calculated as the change in total revenue divided by the change in quantity.

3. Because the monopolist must lower the price of all units sold to sell an additional unit, the marginal revenue from selling an additional unit is less than the price at which the unit is sold. This is because the lower price on all units reduces the total revenue by more than the price of the additional unit increases it.

4. Therefore, in a monopoly with a downward-sloping demand curve, marginal revenue must be less than price.

The correct answer is a) Must be less than price.

Here's why:

1. In a monopoly, the firm is the only seller in the market, and the demand curve that the firm faces is the market demand curve, which is downward sloping. This means that in order to sell more units of a good, the monopolist must lower the price.

2. Marginal revenue is the additional revenue that a firm receives from selling one more unit of a good. Because the monopolist must lower the price on all units sold in order to sell an additional unit, the marginal revenue from selling an additional unit is less than the price that the monopolist receives for that unit.

3. Therefore, when a monopoly faces a downward-sloping demand curve, marginal revenue must be less than price.

The correct answer is a) Must be less than price.

Here's why:

1. In a monopoly, the firm is the only seller of a product with no close substitutes, hence it faces the entire market demand curve which is downward sloping. This means that in order to sell more units, the monopolist must lower the price.

2. Marginal revenue (MR) is the additional revenue that a firm receives from selling one more unit of a good.

3. Because the monopolist must lower the price on all units sold to sell an additional unit, the marginal revenue from selling an additional unit is less than the price at which the unit is sold.

4. Therefore, in a monopoly with a downward-sloping demand curve, marginal revenue must be less than price.