[amp_mcq option1=”Marginal revenue curve always slopes upward” option2=”Total revenue curve always slopes upward” option3=”Marginal revenue is always equal to average revenue” option4=”Marginal revenue is always less than average revenue” correct=”option4″]<\/p>\n
The correct answer is D. Marginal revenue is always less than average revenue in a monopoly market.<\/p>\n
A monopoly is a market structure in which there is only one seller of a good or service. This means that the monopolist has a great deal of market power and can set prices without fear of competition.<\/p>\n
The marginal revenue curve for a monopoly is always less than the average revenue curve. This is because, as the monopolist sells more units of its product, it must lower its price in order to attract new customers. This means that the monopolist’s marginal revenue is always less than the price it receives for its product.<\/p>\n
In other words, the monopolist’s marginal revenue is always below its average revenue because it has to lower its price in order to sell more units. This means that the monopolist’s total revenue will increase at a decreasing rate as it sells more units.<\/p>\n
Here is a diagram that illustrates the relationship between marginal revenue and average revenue for a monopoly:<\/p>\n
[Diagram of a monopoly’s marginal revenue and average revenue curves]<\/p>\n
The marginal revenue curve is always below the average revenue curve, and the total revenue curve is always increasing at a decreasing rate.<\/p>\n
I hope this explanation is helpful! Let me know if you have any other questions.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”Marginal revenue curve always slopes upward” option2=”Total revenue curve always slopes upward” option3=”Marginal revenue is always equal to average revenue” option4=”Marginal revenue is always less than average revenue” correct=”option4″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-49773","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"\n