The marginal revenue curve for a monopoly firm starts at the same point on the vertical axis as the (i) average revenue curve.
(ii) marginal cost curve.
(iii) demand curve.
A)(i) only
B)(i) and (ii)
C)(i) and (iii)
D)(iii) only

Question

The marginal revenue curve for a monopoly firm starts at the same point on the vertical axis as the (i)	average revenue curve.
(ii)	marginal cost curve.
(iii)	demand curve.
A)(i) only
B)(i) and (ii)
C)(i) and (iii)
D)(iii) only

Quizplus · Accepted Answer

The marginal revenue curve for a monopoly firm starts at the same point on the vertical axis as the demand curve, as both are representing the same price at the first unit of output. Additionally, average revenue is equal to price in a monopoly, hence its starting point would also be the same as the demand curve. The marginal cost curve can start from a different point on the vertical axis as it represents the cost of producing one additional unit of output, which may not necessarily be the same as the price. Therefore, only options (i) and (iii) are correct, making choice C the best answer.

The Marginal Revenue Curve for a Monopoly Firm Starts at the Same