The demand line and the marginal revenue line are essentially the same.

Question

Quizplus · Accepted Answer

The demand line shows the quantity of a good or service that consumers are willing and able to purchase at different prices, while the marginal revenue line shows the additional revenue a firm earns from selling one more unit of a good or service. The marginal revenue line is typically lower than the demand line because the firm must lower the price to sell additional units.

The Demand Line and the Marginal Revenue Line Are Essentially