Question

The marginal revenue curve is a straight line beginning at the same point on the: Select one: a. horizontal axis as the demand curve but with twice the slope. b. horizontal axis as the demand curve but with half of the slope. c. vertical axis as the demand curve but with twice the slope. d. vertical axis as the demand curve but with half of the slope.

Answer 1

The correct answer is letter "C": vertical axis as the demand curve but with twice the slope.

Step-by-step explanation:

The marginal revenue curve portraits the relationship between the marginal revenue received by a company and the number of goods produced. It is said to graphically show the degree of market control possessed by the organization. The marginal revenue compared to the demand curve is located below since the marginal revenue is lower than the price.