The marginal revenue curve for a monopolist _______ the market demand curve.
A) always rises above
B) always lies beneath
C) always runs parallel
D) always is the same

Question

Quizplus · Accepted Answer

The marginal revenue curve for a monopolist always lies beneath the market demand curve because a monopolist must lower the price on all units sold to sell an additional unit, which causes marginal revenue to be less than the price.

The Marginal Revenue Curve for a Monopolist _______ the Market