At any point where a monopolist's marginal revenue is positive, the downward-sloping straight-line demand curve is:

Question

Quizplus · Accepted Answer

At any point where a monopolist's marginal revenue is positive, the downward-sloping straight-line demand curve is elastic but not perfectly elastic. This is because the monopolist has market power, which means that it can raise its price and still sell some quantity of its product. A perfectly competitive firm's demand curve, on the other hand, is perfectly elastic because it has no market power and is a price taker. Therefore, the best choice is B.

At Any Point Where a Monopolist's Marginal Revenue Is Positive