What is the shape of the monopolist's marginal revenue curve?

a. a downward-sloping line that lies below the demand curve

b. a horizontal line that lies below the demand curve

c. a downward-sloping line that is identical to the demand curve

d. a horizontal line that is identical to the demand curve

(b) A horizontal line that lies below the demand curve

Explanation:

Marginal revenue of a monopolist is in every case less or equivalent to the cost of the good. In the event that the monopolist needs to sell extra units of output he must diminish the cost. This diminish the marginal revenue earned by the monopolist. Since for each extra output he sells, he is compelled to decrease the cost to a similar amount So the monopolists marginal revenue income curve is descending sloping