For a monopoly producing at any output level greater than one, the average revenue curve:
A)is the same as the demand curve.
B)lies above the demand curve.
C)lies below the demand curve.
D)can be negative.

Question

Quizplus · Accepted Answer

The average revenue curve for a monopoly is the same as the demand curve because average revenue is calculated as total revenue divided by quantity, which directly corresponds to the price at each quantity level on the demand curve.

For a Monopoly Producing at Any Output Level Greater Than