A monopolist's demand curve is the same as the marginal revenue curve for the product.

Question

Quizplus · Accepted Answer

A monopolist's demand curve is downward sloping, while its marginal revenue curve is below the demand curve. This is because a monopolist has market power, and in order to sell more units, they must lower the price, which reduces their revenue per unit sold. Therefore, the marginal revenue curve is always below the demand curve in a monopoly.

A Monopolist's Demand Curve Is the Same as the Marginal