The marginal revenue curve for a monopolist:

A) is a straight,upsloping curve.
B) rises at first,reaches a maximum,and then declines.
C) becomes negative when output increases beyond some particular level.
D) is a straight line,parallel to the horizontal axis.

Question

Kaliyah Abriana · Accepted Answer

Final Answer : C, Explanation :  The marginal revenue curve for a monopolist typically becomes negative when output increases beyond a certain level, reflecting the fact that to sell additional units, the monopolist must lower the price on all units sold, which can lead to a decrease in total revenue for additional units sold beyond a certain point.

The marginal revenue curve for a monopolist:

A) is a straight,upsloping curve.
B) rises at first,reaches a maximum,and then declines.
C) becomes negative when output increases beyond some particular level.
D) is a straight line,parallel to the horizontal axis.

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Learning Objectives

Related questions

The marginal revenue curve for a monopolist:A) is a straight,upsloping curve.B) rises at first,reaches a maximum,and then declines.C) becomes negative when output increases beyond some particular level.D) is a straight line,parallel to the horizontal axis.

Definitions

Learning Objectives

Learning Objectives

Related questions

The marginal revenue curve for a monopolist:

A) is a straight,upsloping curve.
B) rises at first,reaches a maximum,and then declines.
C) becomes negative when output increases beyond some particular level.
D) is a straight line,parallel to the horizontal axis.