For the monopoly firm that does not engage in perfect price discrimination,
A)the marginal revenue curve lies below the demand curve.
B)the marginal revenue curve and demand curve are the same.
C)the marginal revenue curve lies above the demand curve.
D)marginal revenue equals price.
E)c and d

Question

Quizplus · Accepted Answer

For a monopoly that does not engage in perfect price discrimination, the marginal revenue curve lies below the demand curve because each additional unit sold lowers the price of all units sold, not just the marginal unit.

For the Monopoly Firm That Does Not Engage in Perfect