For a monopoly, for all units greater than one the marginal revenue curve:
A)lies above the demand curve.
B)lies below the average revenue curve.
C)cannot be negative.
D)All of these are true.

Question

Quizplus · Accepted Answer

For a monopoly, the marginal revenue curve lies below the average revenue curve (which is the demand curve) because, to sell additional units, the monopolist must lower the price, which applies to all units sold, thus reducing the revenue gained from previously sold units.

For a Monopoly, for All Units Greater Than One the Marginal