Concept:In a monopoly, the demand curve is the average revenue (
AR) curve, and the marginal revenue (
MR) curve lies below it.
Explanation:The monopolist faces a downward-sloping demand curve.
To sell more units, the monopolist must lower the price on all units sold.
This lowers the revenue gained from the last unit (
MR) below the average revenue (
AR).
Therefore, the
MR curve slopes downward to the right and is always below the
AR curve.
Answer:B. slopes down to the right and is below the
AR curve