The slope of marginal revenue curve is ?
Correct answer: D. twice as steep as the demand curve
- A. always equal to one.
- B. half as steep as the demand curve
- C. the same as the slope of the demand curve
- D. twice as steep as the demand curve
Explanation
For a straight-line demand curve, the marginal-revenue curve has the same intercept but twice the slope in absolute value, so it is twice as steep. This standard result assumes a linear demand curve.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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