For a monopoly producing any output level greater than one,the average revenue curve:
A) lies below the demand curve.
B) lies above the marginal revenue curve.
C) is the same as the marginal revenue curve.
D) lies above the demand curve.

Question

Quizplus · Accepted Answer

In a monopoly, the average revenue curve is the same as the demand curve, and it lies above the marginal revenue curve because the monopolist must lower the price to sell additional units, causing marginal revenue to be less than average revenue.

For a Monopoly Producing Any Output Level Greater Than One,the