Usually the demand and marginal revenue curves for a monopoly are the same.

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Quizplus · Accepted Answer

The demand and marginal revenue curves for a monopoly are not the same. The demand curve shows the quantity of a good consumers are willing to buy at different prices, while the marginal revenue curve shows the extra revenue the monopoly earns from selling one more unit of the good. The marginal revenue curve will always lie below the demand curve for a monopoly, because in order to sell more units, the monopoly must lower the price it charges for each unit, resulting in lower revenue per unit. The demand and marginal revenue curves for a monopoly are not the same. The demand curve represents the quantity of a good or service that consumers are willing to buy at various prices, while the marginal revenue curve represents the change in revenue from selling one additional unit. In a monopoly, the demand curve is downward sloping, but the marginal revenue curve is downward sloping at a faster rate, as the monopolist has to lower the price to sell additional units. Therefore, the marginal revenue curve lies below the demand curve.

Usually the Demand and Marginal Revenue Curves for a Monopoly