passwella.
Menu

JAMB Economics 1985 Question 15

Question 15

Market Structures

In the figure above, the broken line labelled M is the Marginal Revenue Curve of a

Diagram for this question
  1. A.monopoly
  2. B.competitive firm
  3. C.state corporation
  4. D.partnership
  5. E.monopsony.
Show the answer and explanation

Answer: A (monopoly)

Explanation

The MR line slopes down and lies below the downward-sloping demand line, which happens only when a firm faces a falling demand curve, as a monopoly does.