If a monopolist cannot price discriminate, i.e., charges a different price for each unit sold, then the marginal revenue curve for a monopolist is downward sloping and lies below the demand curve. To maximize p
For a monopolist, both marginal revenue and demand are downward-sloping curves. Marginal revenue will always be less than demand for a given quantity. This is because a monopolist's demand curve is the same as its average revenue curve, and for a monopolist, both average and marginal revenue ...
The marginal revenue curve for a monopolist is always less than the price because of the price effect. a. True b. False True or false? The more inelastic the demand, the closer marginal revenue is to price. True or false? When a purel...
A monopolist's marginal revenue is less than the price of its product because: (1) its demand curve is the market demand curve, so (2) to increase the amount sold, the monopolist must lower the price of its good for every unit it sells. (3) This cut in prices reduces revenue on ...
Many textbooks incorrectly depict the relationships between marginal and average revenue curves for a price discriminating monopolist. Though linear demand curves in the two separate markets lead to a profit-maximizing monopolist having an aggregate marginal revenue curve which is linear, it is shown ...
A. the revenue gain from the last unit sold is offset by a revenue loss on the units that previously had been sold at a higher price. B. the revenue gain from the last unit sold is offset by further gains in price on units not sold at all. C. total revenue always decreases as out...
The marginal revenue curve for a monopolist is always located below its demand curve. Total revenue will increase as production increases, but marginal revenue declines. Shifts in Demand Because marginal revenue, average revenue and demand for a monopolist are so closely related, any event that ...
aUse the following demand schedule for a monopolist to calculate total revenue (TR) and 为垄断者使用以下需求日程表计算总收支 (TR) 和 [translate] amarginal revenue curve and the total revenue. Identify the elastic, unit elastic and inelastic 边际收入曲线和总收支。 辨认弹性,单位有弹性和无弹性 ...
the demand curve is the willingness of consumers to pay for each additional unit. Substitution and Income Effects ■Substitution Effect the substitution effect suggests that when the price of something falls, consumers tend to purchase more of that good. 商品A价格下降,商品B价格不变,则A相对B更便宜...
Why is the marginal revenue curve for a monopolist downward sloping? Why does the slope of the aggregate supply curve change from the short run to the long run? Why is the market demand curve flatter? Why does the marginal revenue curve lie below the demand curve?