-Given the data in the above table, the marginal revenue curve
A) lies below the demand curve.
B) lies above the demand curve.
C) intersects the demand curve.
D) is equal to the demand curve.

Question

-Given the data in the above table, the marginal revenue curve
A) lies below the demand curve. 
B) lies above the demand curve. 
C) intersects the demand curve. 
D) is equal to the demand curve.

Quizplus · Accepted Answer

The marginal revenue curve lies below the demand curve for a monopolist because each additional unit sold lowers the price for all units sold, thus reducing the revenue gained from selling additional units compared to a perfectly competitive market where the demand curve equals the marginal revenue curve.

-Given the Data in the Above Table, the Marginal Revenue