00:01
So here we're talking about the idea of marginal revenue.
00:02
So first of all, we're told about a demand curve, right? quantity and price.
00:06
And we're said the demand curve is linear and negatively slow.
00:10
So there's my demand curve.
00:11
My argument is going to be that the marginal revenue curve is also going to look like this.
00:17
It will also be a negative slope.
00:19
So the answer here has got to be d negative.
00:23
The question is why, right? marginal revenue was thinking about the change in revenue.
00:30
Over the change in quantity.
00:32
We're in the language of calculus, the derivative of revenue with respect to quantity.
00:37
Well, let's think about what's happening here as we get more and more and more, right? so the idea here, suppose that you are starting here, q1, and you move to q2.
00:49
Right? as you move from q1 to q2, two things happen.
00:55
Right? so one, you get to sell more, right? but two, the price goes down, right? the price is going to fall.
01:05
So to increase q, you need to drop the price.
01:13
The only way you can sell more is that if you let the price in the market fall, right? let the price in the market fall...