« previous next »

Author Question: Describe the marginal revenue curve in relationship to the demand curve for a monopoly. Why is it ... (Read 188 times)

dbose

  • Hero Member
  • *****
  • Posts: 597
on: Jun 29, 2018
Describe the marginal revenue curve in relationship to the demand curve for a monopoly. Why is it like that?
 
  What will be an ideal response?

Question 2

Refer to Figure 4-9. What is the size of the unit tax?
 
  A) 8 B) 5
  C) 3 D) cannot be determined from the figure


kristenb95

  • Sr. Member
  • ****
  • Posts: 318
Reply #1 on: Jun 29, 2018
Answer to Question 1

The marginal revenue curve lies below the demand curve because the monopolist must decrease price in order to sell more output. Therefore each additional unit sold yields its price less the decreased price for each previous unit sold.

Answer to Question 2

B


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Children with strabismus (crossed eyes) can be treated. They are not able to outgrow this condition on their own, but with help, it can be more easily corrected at a younger age. It is important for infants to have eye examinations as early as possible in their development and then another at age 2 years.

Did you know?

Methicillin-resistant Staphylococcus aureus or MRSA was discovered in 1961 in the United Kingdom. It if often referred to as a superbug. MRSA infections cause more deaths in the United States every year than AIDS.

Methicilli ...
Did you know?

Women are two-thirds more likely than men to develop irritable bowel syndrome. This may be attributable to hormonal changes related to their menstrual cycles.

Did you know?

In women, pharmacodynamic differences include increased sensitivity to (and increased effectiveness of) beta-blockers, opioids, selective serotonin reuptake inhibitors, and typical antipsychotics.

Did you know?

In 1885, the Lloyd Manufacturing Company of Albany, New York, promoted and sold "Cocaine Toothache Drops" at 15 cents per bottle! In 1914, the Harrison Narcotic Act brought the sale and distribution of this drug under federal control.

Leaf structure and its relationship to the C4 cycle Leaf structure and its relationship to the C4 cycle
Relationship between body size and seed size in Galapagos finch species Relationship between body size and seed size in Galapagos finch species
Dose–response relationship. Dose–response relationship.
Growth in the demand for oil from the developing world Growth in the demand for oil from the developing world
Describe the development of atherosclerosis, including its role in the risk of heart disease Describe the development of atherosclerosis, including its role in the risk of heart disease
Find the factor demand for labour and the amount of output it will produce. Show all ... Find the factor demand for labour and the amount of output it will produce. Show all ...
Video: Glomerular filtrate rate: pressures that affect GFR, NFP & GFR and blood composition

For a complete list of videos, visit our video library