Intro to Imperfect Competition- Micro Topic 4.1 (Part 1 of 2)

The video tutorial explains why marginal revenue is less than the demand curve for monopolies. It begins with an introduction to the concept and then delves into the pricing strategies of monopolies. The tutorial uses examples to illustrate how monopolies must lower prices to sell additional units, affecting total and marginal revenue. The key takeaway is understanding the relationship between price, demand, and revenue in a monopoly setting.

What happens to marginal revenue when a monopoly lowers the price for all units sold?

Describe the concept of marginal revenue in the context of selling multiple units.