Marginal revenue is less than price under monopoly because O

Marginal revenue is less than price under monopoly because: O the monopolist\'s demand curve is perfectly elastic. 0 the monopolist\'s total revenue curve is linear and slopes upward to the right. 0 the monopolist\'s demand curve is perfectly inelastic. O when a monopolist lowers price to sell more outout, the lower price applies to all units sold.

Solution

Correct option is (4).

The monopolist faces a downward sloping demand curve and the MR curve lies below the demand curve. When monopolist lowers price, it applies to all units sold, and MR is less than price.