The figure given below shows the cost and revenue curves of a monopolist.Figure 11.9
D: Average revenue
MR: Marginal revenue
ATC: Average total cost
MC: Marginal cost
-The marginal revenue curve of a monopolist coincides with its average revenue curve.

Question

The figure given below shows the cost and revenue curves of a monopolist.Figure 11.9
  D: Average revenue
MR: Marginal revenue
ATC: Average total cost
MC: Marginal cost
-The marginal revenue curve of a monopolist coincides with its average revenue curve.

Quizplus · Accepted Answer

In a monopolistic market, the marginal revenue curve does not coincide with the average revenue curve; instead, it lies below the average revenue curve because a monopolist must lower the price to sell additional units, causing marginal revenue to fall faster than average revenue.

The Figure Given Below Shows the Cost and Revenue Curves