A single- price monopoly's demand curve lies
A) below its marginal revenue curve.
B) above its marginal revenue curve.
C) on top of its marginal revenue curve.
D) on top of its total revenue curve.

Question

Quizplus · Accepted Answer

In a single-price monopoly, the demand curve is above the marginal revenue curve because the monopolist must lower the price on all units sold to sell additional units, causing marginal revenue to be less than the price.

A Single- Price Monopoly's Demand Curve Lies