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Regardless of whether a firm is a monopoly or a member of an oligopolistic or monopolistically competitive industry, a graph of any non-discriminating, imperfectly competitive firm will have which of the following characteristics?

A

The marginal revenue curve will reside above the demand curve because any reduction in price applies only to the extra unit sold.

B

The marginal revenue curve will reside above the demand curve because any reduction in price applies to all units sold.

C

The marginal revenue curve will reside below the demand curve because any reduction in price applies to all units sold.

D

The marginal revenue curve will reside below the demand curve because any reduction in price applies only to the extra unit sold.

E

The marginal revenue and demand curves will coincide at all price levels.

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