passwella.
Menu

WAEC Economics 2025 Question 3

Question 3

Market Structures

The monopolist's price is always

  1. A.lower than his production cost per unit.
  2. B.lower than average revenue.
  3. C.higher than marginal revenue.
  4. D.higher than average revenue.
Show the answer and explanation

Answer: C (higher than marginal revenue.)

Explanation

A monopolist must cut price to sell more, so MR is below price (AR).