When the demand curve is a downward sloping straight line, the quantity at which the demand curve intersects the horizontal (quantity) axis is ________ the quantity at which the marginal revenue curve intersects the horizontal (quantity) axis.
A) equal to
B) less than
C) twice
D) four times

Question

Quizplus · Accepted Answer

When the demand curve is a downward sloping straight line, the marginal revenue curve has the same intercept on the price axis but twice the slope. This means the quantity at which the marginal revenue curve intersects the horizontal axis is twice the quantity at which the demand curve intersects the horizontal axis.

When the Demand Curve Is a Downward Sloping Straight Line