Exhibit 8-1 Monopolist's demand curve Which of the following points in Exhibit 8-1 would not lie on the marginal revenue curve corresponding to the monopolist's straight-line demand curve?
A) A.
B) B.
C) C.
D) C and B.

Question

Exhibit 8-1  Monopolist's demand curve  Which of the following points in Exhibit 8-1 would not lie on the marginal revenue curve corresponding to the monopolist's straight-line demand curve?
A) A. 
B) B. 
C) C. 
D) C and B.

Quizplus · Accepted Answer

Point B is the midpoint of the demand curve and will have a marginal revenue of zero. Point C is the point where the demand curve intersects the vertical axis and will have a marginal revenue equal to the price. Therefore, these points would not lie on the marginal revenue curve corresponding to the monopolist's straight-line demand curve. Point A, on the other hand, is a point on the demand curve itself and would lie on the marginal revenue curve. Therefore, the correct answer is D, as both points C and B would not lie on the marginal revenue curve.

Exhibit 8-1 Monopolist's Demand Curve Which of the Following Points