For a demand curve that is horizontal,the marginal revenue curve
A)will be to the right of the demand curve and half as steep.
B)will be to the left of the demand curve and half as steep.
C)will be to the right of the demand curve and twice as steep.
D)will be the same as the demand curve.

Question

Quizplus · Accepted Answer

For a horizontal demand curve, the price remains constant regardless of the quantity produced or sold. This means that the marginal revenue earned from selling an additional unit of the good is equal to the price of the good, which is the same as the demand curve. Therefore, the marginal revenue curve will be the same as the demand curve in this case.

For a Demand Curve That Is Horizontal,the Marginal Revenue Curve