The revenue curves that a monopoly faces are different from those that a perfectly competitive firm faces in that the:
A) marginal revenue curve is downward sloping instead of flat.
B) average revenue curve is no longer equal to price.
C) marginal revenue curve is now flat instead of downward sloping.
D) total revenue curve for a monopoly is linear.

Question

Quizplus · Accepted Answer

In a monopoly, the marginal revenue curve is downward sloping because the monopolist must lower the price to sell additional units, unlike in perfect competition where the marginal revenue is constant and equal to the price.

The Revenue Curves That a Monopoly Faces Are Different from Those