The revenue curves the monopoly faces are different from that a perfectly competitive firm faces in that:
A)the marginal revenue curve is downward sloping instead of flat.
B)the average revenue curve is no longer equal to price.
C)the marginal revenue curve is now flat instead of downward sloping.
D)The revenue curves are the same for a firm regardless of market structure.

Question

Quizplus · Accepted Answer

In a monopoly, the marginal revenue curve is downward sloping because the firm must lower the price to sell additional units, unlike in perfect competition where the marginal revenue is constant and equal to the price.

The Revenue Curves the Monopoly Faces Are Different from That