The figure below shows the demand curve in a monopoly market.

-Refer to the figure above.Which of the four dashed lines represent the marginal revenue of this monopoly firm?
A) Line 1
B) Line 2
C) Line 3
D) Line 4

Question

The figure below shows the demand curve in a monopoly market.
 
-Refer to the figure above.Which of the four dashed lines represent the marginal revenue of this monopoly firm?
A) Line 1 
B) Line 2 
C) Line 3 
D) Line 4

Quizplus · Accepted Answer

In a monopoly, the marginal revenue curve lies below the demand curve and is steeper. Line 1 is the only line that fits this description.

The Figure Below Shows the Demand Curve in a Monopoly