The marginal revenue curve for a monopolist is
A) U-shaped.
B) downward sloping.
C) horizontal.
D) the same as its demand curve.

Name: The marginal revenue curve for a monopolist is A) U-shaped. B) downward sloping. C) horizontal. D) the same as its demand curve.
Brand: Quizplus
Rating: 4.8 (38 reviews)

Question

Quizplus · Accepted Answer

The marginal revenue curve for a monopolist is downward sloping because, to sell additional units, the monopolist must lower the price, which affects the revenue generated from all units sold, not just the additional unit.

The Marginal Revenue Curve for a Monopolist Is