Why is a single-price monopoly's marginal revenue less than the monopoly's price?
Marginal revenue is less than the monopoly's price because

Question

Why is a single-price monopoly's marginal revenue less than the monopoly's price? 
 Marginal revenue is less than the monopoly's price because

Answer

the revenue gained from the last unit sold is offset by the fall in the price on additional units sold.

Answer

total revenue always decreases as output increases.

Answer

the market demand for the monopoly's output is perfectly elastic.

Answer

to sell more units, the price does not need to be lowered on all previous units sold.

Answer

the revenue gained from the last unit sold is offset by a revenue loss on the units that previously had been sold at a higher price.

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