The following graph shows the marginal revenue (MR) , marginal cost (MC) , demand and average revenue (D = AR) curves for a profit-maximizing firm. Refer to the graph to answer the question. 
Which of the following statements is true?
A) The demand curve above the market price is relatively inelastic.
B) The demand curve below the market price is relatively elastic.
C) The marginal revenue curve is a vertical line at the profit-maximizing level of output.
D) Marginal cost is greater than marginal revenue at the profit-maximizing level of output.
Correct Answer:
Verified
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