A non-price discriminating monopolist's demand curve:
A)is horizontal at the market price.
B)lies to the right of its marginal revenue curve.
C)is the same as its marginal cost curve.
D)indicates that the firm must raise price to sell additional units.
E)lies above the marginal cost curve at all levels of output.

Question

A non-price discriminating monopolist's demand curve:​
A)is horizontal at the market price.
B)lies to the right of its marginal revenue curve.
C)is the same as its marginal cost curve.
D)indicates that the firm must raise price to sell additional units.
E)lies above the marginal cost curve at all levels of output.

Quizplus · Accepted Answer

A non-price discriminating monopolist's demand curve is downward sloping and lies to the right of its marginal revenue curve because the monopolist must lower the price to sell additional units, causing marginal revenue to be less than the price.

A Non-Price Discriminating Monopolist's Demand Curve:​

A Non-Price Discriminating Monopolist's Demand Curve: