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P = a – bQ is the demand cure of a monopolist. Which of the following statements istrue?

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Question:

P = a – bQ is the demand cure of a monopolist. Which of the following statements istrue?

A.

AR & MR are equal

B.

The rate of decline of MR is twice the rate of decline of AR

C.

The demand curve has unit elasticity

D.

slope of MR is zero.

Answer» b. The rate of decline of MR is twice the rate of decline of AR

Note: The above multiple-choice question is for all general and Competitive Exams in India.