If the demand curve is horizontal,marginal revenue must be the same as
A) total revenue.
B) quantity.
C) average costs.
D) price.
E) sales.

Question

Quizplus · Accepted Answer

When the demand curve is horizontal, it means that consumers are willing to buy any quantity of the product at a fixed price. Therefore, the price remains the same regardless of the quantity of units sold. As a result, the marginal revenue earned from selling each additional unit is equal to the price of the product. Hence, the correct answer is D) price.

If the Demand Curve Is Horizontal,marginal Revenue Must Be the Same