If a monopolist faces a linear demand curve,its marginal revenue curve will be ________.

Name: If a monopolist faces a linear demand curve,its marginal revenue curve will be ________.
Brand: Quizplus
Rating: 4.7 (52 reviews)

Question

Quizplus · Accepted Answer

The marginal revenue curve for a monopolist facing a linear demand curve is twice as steep as the demand curve. This is because the marginal revenue not only includes the revenue from selling an additional unit but also accounts for the lower price that must be charged on all units sold to sell that additional unit.

If a Monopolist Faces a Linear Demand Curve,its Marginal Revenue