For a price- maker, the slope of the marginal revenue curve is always greater than the slope of the average revenue curve.

Question

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For a price-maker (a firm with some control over the market price), the marginal revenue curve is steeper than the average revenue curve because as they sell more units, they must lower the price not just for the additional units sold but for all units sold, which causes the marginal revenue to decrease faster than the average revenue.

For a Price- Maker, the Slope of the Marginal Revenue