In a graph showing a straight-line market demand curve, themarginal revenue curve is:

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The marginal revenue curve for a straight-line market demand curve will also be a straight line, but with twice the slope and starting at the same point as the demand curve on the y-axis. This is because for a single firm in a perfectly competitive market, the market price is equal to both marginal revenue and the slope of the demand curve. Therefore, when drawing the marginal revenue curve, we double the slope of the demand curve to account for the fact that each additional unit sold will not only increase revenue by the market price, but will also cause a slight decrease in the market price.

In a Graph Showing a Straight-Line Market Demand Curve, Themarginal