The demand curve of the monopoly firm is also its ____________.

average revenue curve

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marginal revenue curve

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total revenue curve

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average cost curve

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Solution

The correct option is A average revenue curve
The Average Revenue shows the revenue the firm receives by selling his goods and also the demand for his good in the market.Since the monopoly firm is the price setter, his price is same as his average revenue.
Thus the demand curve of the monopoly firm is also its Average revenue .

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Similar questions

Draw average and marginal revenue curves of a firm under monopoly.

Draw the average revenue curve of a firm under (a) monopoly and (b) perfect competition. Explain the difference in these curves, if any.

Why is the average revenue curve of a monopolist less elastic than the average revenue curve of a firm under monopolistic competition? Explain.

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