What is the relationship between price, marginal revenue, and ...

[Marty]

What is the relationship between price, marginal revenue, and total revenue for a monopolist?
 
  What will be an ideal response?

Question 2

What is the solution to a simultaneous-move game when both sides do not have dominant strategies?
 
  What will be an ideal response?

[Dnite]

Answer to Question 1

As shown in the following figure, the total revenue curve takes on a hump-back shape because it increases when marginal revenue is positive and decreases when marginal revenue is negative. For this reason, total revenue is at its maximum when the marginal revenue curve crosses the x-axis  that is the point where an additional unit of output causes marginal revenue to equal zero.

Answer to Question 2

If just one player has a dominant strategy, the other player knows that the dominant strategy will be chosen and can plan accordingly. When looking for a quick solution players should check for a dominant strategy themselves first and lacking one, should then check for a dominant strategy for their opponents.

[Marty]

Correct answers!

[Dnite]

Great! Please up vote