When a monopolist increases the amount of output that it produces and sells, what happens to its average revenue and its marginal revenue?

Question

Answer

Its average revenue increases, and its marginal revenue decreases.

Answer

Both its average revenue and its marginal revenue increase.

Answer

None of the above.

Answer

Its average revenue decreases, and its marginal revenue increases.

Answer

Both its average revenue and its marginal revenue decrease.

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