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27-08-2019
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For a monopolistically competitive firm, marginal revenue A.is greater than the price.B.equals the price.C.is less than the price.D.and the price are unrelate

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DelcieRiveria DelcieRiveria

28-08-2019

Answer:

The correct answer is option C.

Explanation:

A monopolistic firm is a price maker. It faces a downward sloping demand curve which also reflects the average revenue or price. The profit is maximized by equating marginal revenue and marginal cost.

The marginal revenue curve is also a downward sloping curve and it lies below the demand or average revenue curve.

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