The marginal revenue curve for a monopoly firm starts at the same point on the vertical axis as the (i)
Average revenue curve.(ii)
Marginal cost curve.(iii)
Demand curve.
A)(i) only
B)(i) and (ii) only
C)(i) and (iii) only
D)(iii) only

Question

Quizplus · Accepted Answer

The marginal revenue curve for a monopoly firm starts at the same point on the vertical axis as the demand curve because the monopoly firm is the only supplier in the market and can set its own price. As such, the demand curve is also its average revenue curve.

However, the marginal cost curve does not necessarily start at the same point as the marginal revenue curve. The marginal cost curve represents the additional cost of producing one extra unit of output. It may start at a different point depending on the cost structure of the firm.

Therefore, the correct option is C) (i) and (iii) only.

The Marginal Revenue Curve for a Monopoly Firm Starts at the Same