What is the correct answer?


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

A. Average revenue curve lies above the marginal revenue curve

B. Average revenue curve coincides with the marginal revenue curve

C. Average revenue curve lies below the marginal revenue curve

D. Average revenue curve is parallel to the marginal revenue curve

Correct Answer :

A. Average revenue curve lies above the marginal revenue curve

Related Questions

Price effect occurs on the higher IC in case of: The long run total cost is attained by: Law of Substitution in production was presented by: Micro economics is concerned with: The least cost combination of factors x , y and z will generally be the… In monopolistic competition, if a firm lowers its price, the rival firms… If the demand curve is vertical then its slope is: Scarcity means: The Strategy of Economic Development is the work of: For the given production function, technical inefficiency is defined as: At high prices, demand is likely to be: When the demand curve is rectangular hyperbola, it represents: A shift in the demand for a product is likely to result from a change… Rational economic behavior on the part of the consumer means that he will: If two goods are perfect substitutes then IC will be: Time Preference Theory of Interest was presented by: Diseconomies of management lead to: In non-constant sum game (non-zero sum game), if there are two parties… The slope of marshallian demand curve is: Compared to perfect competition, a monopolist will charge: We can find total utility by: Demand of a commodity is elastic when: Utility is a function of: Who finalized the model of monopolistic competition? Elasticity (E) expressed by the term, 1>E>0, is: The main contribution of Prof. R.G.D.Allen is in the field of: Each SAC represents a particular level of: Increasing returns is not caused by: The isoquant approach is based upon: 7.The costs which the firms have to face in order to change the price…