A monopolist's marginal revenue curve is flatter than its demand curve.

a. True

b. False

Answer: B, False

The marginal revenue curve for a monopolist is twice as steep as its demand curve not flatter. To see why though it is steeper just think of it like this: when a monopolist increases output sold, quantity sold rises but prices fall. This means a monopolist must reduce price to sell more and thus marginal revenue on its additional unit must be less than price.