The MR curve of a monopolist is
A) downward sloping and below the demand curve.
B) downsloping and identical to the demand curve.
C) downsloping and above the demand curve.
D) horizontal and same as the market demand curve.

Question

Quizplus · Accepted Answer

The MR curve of a monopolist is downward sloping and below the demand curve. This is because the monopolist faces a downward sloping demand curve, and to sell more output it has to reduce the price of all units sold. As a result, MR is always less than price, and the MR curve lies below the demand curve.

The MR Curve of a Monopolist Is