Use the following figure to answer the question : Figure 11-5 : shows the demand curve and the marginal revenue curve of a monopolist.On the horizontal axis,OG = GF.
-Refer to Figure 11-5.The absolute value of the slope of the marginal revenue curve equals:
A)twice the slope of the demand curve.
B)one.
C)half the slope of the demand curve.
D)zero.

Question

Use the following figure to answer the question : Figure 11-5 : shows the demand curve and the marginal revenue curve of a monopolist.On the horizontal axis,OG = GF. 
-Refer to Figure 11-5.The absolute value of the slope of the marginal revenue curve equals:
A)twice the slope of the demand curve. 
B)one. 
C)half the slope of the demand curve. 
D)zero.

Quizplus · Accepted Answer

The absolute value of the slope of the marginal revenue curve is twice the slope of the demand curve. This is a result of the marginal revenue curve being steeper than the demand curve in a linear demand model, where the marginal revenue curve has the same y-intercept as the demand curve but twice the slope.

Use the Following Figure to Answer the Question : Figure