Question

Explain the nature of demand and revenue curve under monopoly.

Answer 1

Explanation:

The Nature of Demand and Marginal Revenue Curves under Monopoly. This is so because the demand is by the consumers and the demand curve of consumers for a product usually slopes downward. The downward-sloping demand curve of the consumers faces the whole competitive industry.

Answer 2

Answer:

Demand curve facing the monopolist will be his average revenue curve. Thus, the average revenue curve of the monopolist slopes downward throughout its length. Since average revenue curve slopes downward, marginal revenue curve will lie below it. This follows from usual average- marginal relationship.

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