« previous next »

Author Question: Describe the marginal revenue curve in relationship to the demand curve for a monopoly. Why is it ... (Read 66 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?

Chronic marijuana use can damage the white blood cells and reduce the immune system's ability to respond to disease by as much as 40%. Without a strong immune system, the body is vulnerable to all kinds of degenerative and infectious diseases.

Did you know?

About one in five American adults and teenagers have had a genital herpes infection—and most of them don't know it. People with genital herpes have at least twice the risk of becoming infected with HIV if exposed to it than those people who do not have genital herpes.

Did you know?

The lipid bilayer is made of phospholipids. They are arranged in a double layer because one of their ends is attracted to water while the other is repelled by water.

Did you know?

People who have myopia, or nearsightedness, are not able to see objects at a distance but only up close. It occurs when the cornea is either curved too steeply, the eye is too long, or both. This condition is progressive and worsens with time. More than 100 million people in the United States are nearsighted, but only 20% of those are born with the condition. Diet, eye exercise, drug therapy, and corrective lenses can all help manage nearsightedness.

Did you know?

A seasonal flu vaccine is the best way to reduce the chances you will get seasonal influenza and spread it to others.

Blood pressure and blood volume relationship Blood pressure and blood volume relationship
The Power and Control Wheels of Abusive Relationships When one person in a relationship repeatedly ... The Power and Control Wheels of Abusive Relationships When one person in a relationship repeatedly ...
How to describe transformations of a sinusoidal function (y=a*sin⁡b(x−c)+d) How to describe transformations of a sinusoidal function (y=a*sin⁡b(x−c)+d)
Linear dose-response curve Linear dose-response curve
Relationship between Latitude and Income per Capita Relationship between Latitude and Income per Capita
The slope of the curve y = ax^3 - bx^2 + cx - 3 at x = 2 is 5. If the point of inflection of the cur The slope of the curve y = ax^3 - bx^2 + cx - 3 at x = 2 is 5. If the point of inflection of the cur
Video: Optic Nerve and Optic Disk Animation (Part 2 of 2)

For a complete list of videos, visit our video library