Answer to Question #169806 in Microeconomics for chiming

Question

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Answer 1

There is a price effect in monopoly. When the price is increased, the demand falls leading to a reduction of quantity and the marginal revenue.

Lab made liquid nitrogen Ice cream company is a monopoly. The company suffered a loss of revenue after heavily increasing the price of ice cream because the high price resulted into a low quantity of ice cream sold hence reducing the revenue.