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Commerce · Q283

Economics

Graduate and Post Graduate · Commerce · question 283

Q283

In monopoly, the relationship between average and marginal revenue curves is as follows

A.
AR curve lies above the MR curve
Answer
B.
AR curve coincides with the MR curve
C.
AR curve lies below the MR curve
D.
AR curve is parallel to the MR curve

Answer: Option A

Solution

Answer: Option A
Solution:
In monopoly, the relationship between average and marginal revenue curves is that AR curve lies above the MR curve.