Marginal revenue and demand are unrelated.

Question

Quizplus · Accepted Answer

Marginal revenue is the change in total revenue resulting from a one-unit increase in quantity sold. It is related to demand because in a perfectly competitive market, the marginal revenue curve is identical to the demand curve. In other market structures, such as monopolies or oligopolies, the marginal revenue curve is affected by the degree of market power held by the firm, which in turn is related to the demand for its product.

Marginal Revenue and Demand Are Unrelated