If a nondiscriminating pure monopolist decides to sell one more unit of output, the marginal revenue associated with that unit will be:

A. equal to its price.
B. the price at which that unit is sold less the price reductions that apply to all other units of
output.
C. the price at which that unit is sold plus the price increases that apply to all other units of
output.
D. indeterminate unless marginal cost data are known.


Answer: B

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