why-is-the-marginal-revenue-curve-always-below-the-demand-curve-in-monopolistic-

Question

Why is the marginal revenue curve always below the demand curve in monopolistic competition?

Accepted Answer

Because the price effect reduces revenue for additional units sold.

Answer

Because firms can sell additional units at a higher price.

Answer

Because the demand curve is perfectly elastic.

Answer

Because marginal cost is always higher than marginal revenue.