In general, the product quality marginal revenue curve is downward sloping and the product quality marginal cost curve is upward sloping.

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This is because as more products are produced, the cost per unit typically increases, while the revenue received for each additional unit sold usually decreases due to market saturation or competition. Therefore, the optimal level of product quality and quantity is where the marginal revenue equals the marginal cost, which occurs at a lower quantity and quality than a monopolistic producer would prefer.

In General, the Product Quality Marginal Revenue Curve Is Downward