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WAEC Economics 2025 Objective — Question 26

Question 26 of 51 from the West African Examinations Council (WAEC) Economics 2025 Objective paper, with the correct answer and a full explanation.

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The monopolist's price is always

  • A. lower than average revenue.
  • B. lower than his production cost per unit.
  • C. higher than average revenue.
  • D. higher than marginal revenue.Correct

Explanation

For a monopolist, the demand (AR) curve lies above the MR curve, so price (AR) is always higher than marginal revenue.

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