A single-price monopolist has a demand curve with a constant slope of -5 and an intercept of 50. If it drops its price by 5 units, we can be sure that

A single-price monopolist has a demand curve with a constant slope of -5 and an intercept of 50. If it drops its price by 5 units, we can be sure that



a. sales will increase by 5 units.
b. marginal revenue will decrease by 5 units.
c. marginal revenue will be less than it was before.
d. none of the above are true.


Answer: c. marginal revenue will be less than it was before.


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