Q89
In case of monopoly
A.
Marginal revenue curve always slopes upward
B.
Total revenue curve always slopes upward
C.
Marginal revenue is always equal to average revenue
D.
Marginal revenue is always less than average revenue
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
In case of monopoly, Marginal revenue is always less than average revenue. A monopolist's marginal revenue is always less than or equal to the price of the good. Marginal revenue is the amount of revenue the firm receives for each additional unit of output.