True or False: A firm's TR is $100 when it sells the first unit and $200 when it sells the second unit. This firm is a monopolist.

• A. True
• B. False
• C. Not determinable
• D. It depends on demand curve

Answer: (B)

In a monopoly, the quantity sold is tied to a downward-sloping demand, so lowering the price to sell more units means the marginal revenue is always less than the price (MR < P for the units sold).

From the data, the price at one unit is TR1/1 = 100. If you sell two units at the same price, the price would be TR2/2 = 200/2 = 100. The marginal revenue of the second unit is MR2 = TR2 − TR1 = 200 − 100 = 100, which equals the price at q = 2 (100). That MR equals price, not less than price, which conflicts with the typical monopoly pattern of MR < P.

Therefore, the given revenue pattern cannot come from a monopolist, so the statement is false.