Like other related concepts, marginal revenue can be graphically depicted. It is most often represented as a downward-sloping straight line on a chart capturing price on the y-axis and quantity on the x-axis. The marginal revenue curve is often downward sloping because there is often an econ...
When we look at the marginal revenue curve versus the demand curve graphically, we notice that both curves have the same intercept on the P axis, because they have the same constant, and the marginal revenue curve is twice as steep as the demand curve, because the coefficient on Q is twic...
Marginal cost is often graphically depicted as a relationship between marginal revenue andaverage cost. The marginal cost slope will vary across company and product, but it is often a U-shaped curve that initially decreases as efficiency is realized only to later potentially exponentially increase. I...
Since the buyer’s demand curve represents graphically the quantities demanded or purchased by the buyers at various prices of the good, it also, therefore, shows the average revenue at which the various amounts of the good are sold by the seller. This is because the price paid by the...
Because marginal revenue is partially based on the inverted demand curve, if something changes demand, marginal revenue will also change. A shift in demand would be reflected graphically as the demand curve shifting downward and inward: the intercept of the curve would decrease. Marginal revenue sha...
After reaching the minimum point, the marginal cost of production increases with an increase in production further. Answer and Explanation: The profit of any firm can be maximized if the following two conditions are met; 1. The marginal revenue eq...
In economics, revenue is the returns that a business or firm receives from the exchange of products and services to its customers. On the other hand, marginal revenue refers to the added income obtained by increasing one unit of a product or service...
the ascertainment of marginal costs, and of the effect on profit, of changes in the volume or type of output, by differentiating between fixed and variable costs. Under this technique, variable cost of production is set off against sales revenue. The resultant surplus is known as ‘contribution...
Why is a monopolist's marginal revenue less than the price of its good? Can marginal revenue ever be negative? Explain. Monopolistic Markets: A monopolistic market structure is one that combines the characteristics of a monopoly and a competitive ...
Accounting profit is a key concept in business which refers to the difference between what a firm has earned from its sales and the cost of making those sales. In economics, this can be said as, total revenue minus total cost. Total revenue is found by multiplying the number of...