The correct answer is: C. lies below and converges with the demand curve.
A monopoly is a market structure in which there is only one seller of a good or service. The demand curve for a monopoly is downward-sloping, which means that the monopolist can charge a higher price and still sell some units of the good or service. However, the monopolist’s marginal revenue curve is always below the demand curve. This is because when the monopolist sells one more unit of the good or service, it has to lower the price on all of the units that it sells. This means that the marginal revenue from selling one more unit is always less than the price that the monopolist charges for that unit.
The marginal revenue curve for a monopoly lies below and converges with the demand curve because the monopolist has to lower the price on all of the units that it sells in order to sell one more unit. This means that the marginal revenue from selling one more unit is always less than the price that the monopolist charges for that unit.
Option A is incorrect because the marginal revenue curve for a monopoly is always below the demand curve.
Option B is incorrect because the marginal revenue curve for a monopoly is not parallel to the demand curve.
Option D is incorrect because the marginal revenue curve for a monopoly does not diverge from the demand curve.