A monopolist with a linear demand curve will have a marginal revenue curve with ______intercept and ______slope as the demand curve.

Question

Quizplus · Accepted Answer

A linear demand curve has a constant slope, and a monopolist with a linear demand curve faces a downward-sloping demand curve. Therefore, the monopolist's marginal revenue curve will have a steeper slope than the demand curve. However, the intercepts of the two curves will be the same since they intersect at the same quantity where price equals marginal cost. Therefore, the correct answer is B.

A Monopolist with a Linear Demand Curve Will Have a Marginal