For a monopolist, the point where the marginal revenue curve intersects the horizontal axis is:
A) one-fourth of the distance between the origin and the point where the demand curve intersects the horizontal axis.
B) located at the same point where the demand curve intersects the horizontal axis, since for a monopolist, the demand curve and the marginal revenue curve overlap.
C) one-half the distance between the origin and the point where the demand curve intersects the horizontal axis.
D) unable to be determined without knowing the location of the marginal cost curve.

Question

Quizplus · Accepted Answer

For a monopolist, the marginal revenue curve intersects the horizontal axis at a point that is halfway between the origin and where the demand curve intersects the horizontal axis. This is because the marginal revenue curve has twice the slope of the demand curve.

For a Monopolist, the Point Where the Marginal Revenue Curve