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MR curve under Monopoly lies between AR and Y – axis because, the rate of decline of the MR is
  • a)
    Just half of the rate of decline of AR
  • b)
    Just equal to the rate of decline of AR
  • c)
    Just triple the rate of decline of the average revenue
  • d)
    Just double the rate of decline of the average revenue
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
MR curve under Monopoly lies between AR and Y – axis because, th...
This statement is not entirely accurate. The correct statement is that the MR curve under Monopoly lies below the demand curve (AR) because a monopolist must lower the price of all units sold to sell an additional unit, resulting in a decrease in revenue per unit. However, the MR curve may intersect with the Y-axis at a point above or below the origin, depending on the elasticity of demand. If demand is elastic, the MR curve will intersect below the Y-axis, while if demand is inelastic, the MR curve will intersect above the Y-axis.
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Community Answer
MR curve under Monopoly lies between AR and Y – axis because, th...
Beacuse If AR falls, MR also falls, but MR falls faster than AR.
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MR curve under Monopoly lies between AR and Y – axis because, the rate of decline of the MR isa)Just half of the rate of decline of ARb)Just equal to the rate of decline of ARc)Just triple the rate of decline of the average revenued)Just double the rate of decline of the average revenueCorrect answer is option 'D'. Can you explain this answer?
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MR curve under Monopoly lies between AR and Y – axis because, the rate of decline of the MR isa)Just half of the rate of decline of ARb)Just equal to the rate of decline of ARc)Just triple the rate of decline of the average revenued)Just double the rate of decline of the average revenueCorrect answer is option 'D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about MR curve under Monopoly lies between AR and Y – axis because, the rate of decline of the MR isa)Just half of the rate of decline of ARb)Just equal to the rate of decline of ARc)Just triple the rate of decline of the average revenued)Just double the rate of decline of the average revenueCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for MR curve under Monopoly lies between AR and Y – axis because, the rate of decline of the MR isa)Just half of the rate of decline of ARb)Just equal to the rate of decline of ARc)Just triple the rate of decline of the average revenued)Just double the rate of decline of the average revenueCorrect answer is option 'D'. Can you explain this answer?.
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