Answer to Question #49256 in Microeconomics for Austin

Question

For a monopolist that employs a uniform pricing strategy, marginal revenue is less than price because: the monopolist’s demand curve is perfectly inelastic
the monopolist’s demand curve is perfectly elastic
if the monopolist charges a lower price versus a higher price, the lower price applies to all units of output sold
the monopolist’s total revenue curve is linear and upward sloping

Answer 1

Uniform pricing is also called "simple monopoly pricing". The buyers are free to choose the quantity at a fixed price. For a monopolist that employs a uniform pricing strategy, marginal revenue is less than price because: if the monopolist charges a lower price versus a higher price, the lower price applies to all units of output sold.