💬 👋 We’re always here. Join our Discord to connect with other students 24/7, any time, night or day.Join Here!
Watch step-by-step video solution
Like
Report
What is the usual shape of a marginal revenue curve for a monopolist? Why?
Marginal revenue is the addition revenue earned when there in one additional unit of good. Theshape of marginal revenue curve is a downward sloping curve which lies always below thedemand curve.
No Related Courses
Chapter 9
Monopoly
How Markets Work
Markets and Welfare
Firm Behavior and the Organization of Industry
05:00
What is the usual shape of…
01:22
Briefly explain the reason…
02:00
What shapes would you gene…
02:12
What shape of a long-run a…
01:29
How does the demand curve …
05:34
What is the relationship b…
01:52
What is marginal cost? Why…
01:53
How is the demand curve pe…
01:46
How can a monopolist ident…
03:20
Draw a diagram, including …
01:18
A firm's marginal cos…
01:06
04:46
What is marginal benefit? …
01:30
02:49
Draw the demand curve, mar…
02:13
Draw a monopolist’s demand…
01:51
Average cost curves (excep…
01:34
A firm has the strange $A …
How does the average cost …
02:30
Why is the equality of mar…
Let's talk about the Marquis. No revenue curve from a monopolist. What shaped us it take well, The money in revenue curve is going to be a straight line, and it's gonna be downward sloping. I'm like a competitive firm, which we saw a straight line. This is going to be down. We're sloping. Um, in The reason for that is that the monopolise can charge different prices for his good. So ask you increase quantity, your price is gonna have to decrease. Right. So we saw that the man Kerr for monopolise and Alison were sloping because the more you charged customers thing anywhere monopolise, the less customers were going to buy your product. So the same thing with marginal revenue it Since it's a change in total revenue, the more quantity to you increase the price becomes smaller and smaller if you want to get to die higher quantity. So the change in total revenue is going to be smaller and smaller because your price has to be smaller too kept on many. So your marginal revenues gonna keep decreasing and decreasing, resemble margin revenues. Here has to be zero, because if you want to have this many can customers then you wouldn't need to give out this'll ce product for free honey. That's just one example of how we can be the market a revenue curve.
View More Answers From This Book
Find Another Textbook
What is the usual shape of a total revenue curve for a monopolist? Why?
Briefly explain the reason for the shape of a marginal revenue curve for a p…
What shapes would you generally expect a total product curve and a marginal …
What shape of a long-run average cost curve illustrates economies of scale, …
How does the demand curve perceived by a monopolist compare with the market …
What is the relationship between marginal product and marginal cost? (Hint: …
What is marginal cost? Why is the supply curve referred to as a marginal cos…
How is the demand curve perceived by a perfectly competitive firm different …
How can a monopolist identify the profitmaximizing level of output if it kno…
Draw a diagram, including demand, marginal revenue, marginal cost, and any o…
A firm's marginal cost curve above the averable cost curve is equal to …
What is marginal benefit? Why is the demand curve referred to as a marginal …
How does the demand curve faced by a purely monopolistic seller differ from …
Draw the demand curve, marginal revenue, and marginal cost curves from Figur…
Draw a monopolist’s demand curve, marginal revenue, and marginal cost curves…
Average cost curves (except for average fixed cost) tend to be U-shaped, dec…
A firm has the strange $A T C$ curve drawn in the following figure. Sketch i…
How does the average cost curve help to show whether a firm is making profit…
Why is the equality of marginal revenue and marginal cost essential for prof…
01:02
In a market without environmental regulations, will the supply curve for a f…
01:28
Small Mom and Pop firms, like inner city grocery stores, sometimes exist eve…
01:38
Why will profits for firms in a perfectly competitive industry tend to vanis…
00:30
What two rules does a perfectly competitive firm apply to determine its prof…
01:42
What is the relationship between product differentiation and monopolistic co…
02:10
How do we measure a four-firm concentration ratio? What does a high measure …
01:31
A market in perfect competition is in long-run equilibrium. What happens to …
02:18
How would an improvement in technology, like the high-efficiency gas turbine…
Give an example of a positive externality and an example of a negative exter…
01:41
Can you think of an industry (or product) with near infinite elasticity of s…
