The marginal revenue curve for a monopolist is greater than the price because the monopolist faces a downward sloping demand curve for its product.

Question

Quizplus · Accepted Answer

The marginal revenue curve for a monopolist is typically below the demand curve (or price) because to sell additional units, the monopolist must lower the price on all units sold, not just the additional unit, which causes marginal revenue to be less than the price.

The Marginal Revenue Curve for a Monopolist Is Greater Than