The vertical distance between the horizontal axis and any point on a nondiscriminating monopolist's demand curve measures
A) the quantity demanded.
B) product price and marginal revenue.
C) total revenue.
D) product price and average revenue.

Question

Quizplus · Accepted Answer

The vertical distance between the horizontal axis and any point on a nondiscriminating monopolist's demand curve measures the product price and average revenue. This is because the demand curve shows the maximum price that consumers are willing to pay for each quantity of the product, and the average revenue is calculated by dividing total revenue by the quantity sold.

The Vertical Distance Between the Horizontal Axis and Any Point