If a monopolist faces a linear demand curve, its marginal revenue curve will cross the quantity...

If a monopolist faces a linear demand curve, its marginal revenue curve will cross the quantity axis at the quantity related to:

a. MR=MC

b. the point of unit elasticity on demand curve

c. the minimum of average total cost

d. the profit maximizing price

Solutions

Expert Solution

Option B

When the monopoly has a liner demand curve then the MR CURVE will cut the quantity axis corresponding to the point where the demand curve is unitary elastic.

Rahul Sunny answered 1 year ago

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