A monopoly's marginal revenue curve is always
A) is always above the demand curve.
B) identical to that of a perfectly competitive firm.
C) twice as steep as the demand curve.
D) none of the above.

Question

Quizplus · Accepted Answer

A monopoly's marginal revenue curve is not always above the demand curve, as it is for a perfectly competitive firm. It is also not necessarily identical to that of a perfectly competitive firm or twice as steep as the demand curve. Therefore, D is the most accurate choice.

A Monopoly's Marginal Revenue Curve Is Always