Draw the monopoly market model which reflect the following question and answer the question. The marginal revenue curve for a monopolist is __________________ its demand curve. Group of answer choicesAboveBelow

The marginal revenue curve for a monopolist is below its demand curve.

Here's a step-by-step guide to draw the monopoly market model:

1. Draw two axes: The vertical axis represents price (P) and the horizontal axis represents quantity (Q).

2. Draw the demand curve: It's a downward sloping line from left to right, showing the relationship between price and quantity demanded.

3. Draw the marginal cost curve: It's a U-shaped curve that intersects the demand curve at the highest point.

4. Draw the marginal revenue curve: It starts at the same point as the demand curve on the price axis, but it falls twice as steeply. This means it's below the demand curve.

5. The point where the marginal cost curve intersects the marginal revenue curve determines the quantity of output the monopolist will produce.

6. Draw a vertical line from this point to the demand curve to find the price the monopolist will charge.

This model reflects the fact that a monopolist, unlike a firm in a perfectly competitive market, has control over the price of its product. The marginal revenue curve is below the demand curve because the monopolist can increase sales only by lowering the price, which reduces the revenue from all units sold, not just the additional ones.