A monopoly's marginal revenue curve is downward sloping because it must lower the price to sell more units, meaning each unit sold generates less revenue. The supply curve of a monopoly is not typically defined as it has the ability to choose any combination of price and quantity along the demand curve.

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A Monopoly's

Question 35

Multiple Choice

A monopoly's

A) supply curve is the same as its marginal cost curve
B) supply curve is the same as its marginal revenue curve
C) marginal cost curve is downward sloping
D) demand curve is horizontal
E) marginal revenue curve is downward sloping

Correct Answer: