A single price monopoly has a marginal revenue curve that is A upward sloping an

Question

A single price monopoly has a marginal revenue curve that is
A upward sloping and is the same as its supply curve
B downward sloping and lies below the demand curve
C horizontal and equal to price
D downward sloping and lies above the demand curve
E vertical at the profit maximizing quantity A single price monopoly has a marginal revenue curve that is
A upward sloping and is the same as its supply curve
B downward sloping and lies below the demand curve
C horizontal and equal to price
D downward sloping and lies above the demand curve
E vertical at the profit maximizing quantity
A upward sloping and is the same as its supply curve
B downward sloping and lies below the demand curve
C horizontal and equal to price
D downward sloping and lies above the demand curve
E vertical at the profit maximizing quantity

Explanation / Answer

Answer)

B downward sloping and lies below the demand curve

Reason)

Because a monopoly is a price maker and faces a negatively-sloped demand curve, its marginal revenue curve is also negatively sloped and lies below its average revenue (and demand) curve.A monopoly maximizes profit by producing the quantity of output found at the intersection of the marginal revenue curve and marginal cost curve.

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