Suppose competitive firm and monopolist each charge

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Suppose a competitive firm and a monopolist each charge $5 for their respective outputs. One can conclude that:

a) Marginal revenue is $5 for both firms.

b) Marginal revenue is $5 for the competitive firm and less than $5 for the monopolist. X

c) Marginal revenue is less than $5 for both firms.

d) The competitive firm is charging too much and the monopolist too little.

WHY DOES IT SAY THE MR < 5 FOR MONOPOLISTS?

Reference no: EM131166306

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