« previous next »

Author Question: Describe the marginal revenue curve in relationship to the demand curve for a monopoly. Why is it ... (Read 96 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?

The term pharmacology is derived from the Greek words pharmakon("claim, medicine, poison, or remedy") and logos ("study").

Did you know?

It is believed that humans initially contracted crabs from gorillas about 3 million years ago from either sleeping in gorilla nests or eating the apes.

Did you know?

Patients should never assume they are being given the appropriate drugs. They should make sure they know which drugs are being prescribed, and always double-check that the drugs received match the prescription.

Did you know?

The average human gut is home to perhaps 500 to 1,000 different species of bacteria.

Did you know?

The first oral chemotherapy drug for colon cancer was approved by FDA in 2001.

Schematic relationship between a phylogenetic tree and taxonomy. Schematic relationship between a phylogenetic tree and taxonomy.
The human oxygen-hemoglobin dissociation curve. The human oxygen-hemoglobin dissociation curve.
The Light Curve of a Nova The Light Curve of a Nova
Relationship Between Physical Activity and Improved Health Benefits Relationship Between Physical Activity and Improved Health Benefits
Relationship Between Training Intensity and VO2max Improvement Relationship Between Training Intensity and VO2max Improvement
The Dose-Effect Relationship, Showing (A) Drug Potency and (B) Drug Efficacy (Or Effectiveness) The Dose-Effect Relationship, Showing (A) Drug Potency and (B) Drug Efficacy (Or Effectiveness)
Video: System organization - PPM system types (Somatic, Autonomic & Enteric) and Reflex arc types

For a complete list of videos, visit our video library