The marginal revenue curve of a monopolist:
A)is the same as the monopolist's demand curve.
B)is downward-sloping.
C)is horizontal.
D)has a slope that is equal to half the slope of the demand curve.

Question

Quizplus · Accepted Answer

The marginal revenue curve of a monopolist is downward-sloping because in order to sell another unit of the product, the monopolist must lower the price for all units sold, thus reducing the revenue earned per unit.

The Marginal Revenue Curve of a Monopolist