The Theory of Imperfect Competition Monopoly: A Brief Review ° Marginal revenue The extra revenue the firm gains from selling an additional unit Its curve, MR, always lies below the demand curve. D In order to sell an additional unit of output the firm must lower the price of all units sold(not just the marginal one) Copyright C 2003 Pearson Education, Inc Slide 6-9Copyright © 2003 Pearson Education, Inc. Slide 6-9 ▪ Monopoly: A Brief Review • Marginal revenue – The extra revenue the firm gains from selling an additional unit – Its curve, MR, always lies below the demand curve, D. – In order to sell an additional unit of output the firm must lower the price of all units sold (not just the marginal one). The Theory of Imperfect Competition