Use the following to answer question:
Figure: The Monopolist
-(Scenario: Monopolist)Use Scenario: Monopolist.The MR curve is: Scenario: Monopolist
The demand curve for a monopolist is P = 75 - 0.5Q,and the monopolist's marginal cost curve is defined using the equation MC = 2Q.Assume also that ATC at the profit-maximizing level of production is equal to $12.50.
A)MR = 150 - 0.5Q.
B)MR = 75 - Q.
C)MR = 150 - Q.
D)MR = 225 - Q.

Question

Use the following to answer question:
Figure: The Monopolist 
-(Scenario: Monopolist)Use Scenario: Monopolist.The MR curve is: Scenario: Monopolist
The demand curve for a monopolist is P = 75 - 0.5Q,and the monopolist's marginal cost curve is defined using the equation MC = 2Q.Assume also that ATC at the profit-maximizing level of production is equal to $12.50.
A)MR = 150 - 0.5Q. 
B)MR = 75 - Q. 
C)MR = 150 - Q. 
D)MR = 225 - Q.

Quizplus · Accepted Answer

The marginal revenue (MR) curve for a monopolist is always twice as steep as the demand curve. Therefore, we can find the MR curve by multiplying the slope of the demand curve (-0.5) by 2. Thus, MR = 2(-0.5)Q + 75 = 75 - Q. Therefore, the correct answer is (B).

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