« previous next »

Author Question: Describe the marginal revenue curve in relationship to the demand curve for a monopoly. Why is it ... (Read 199 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?

Most childhood vaccines are 90–99% effective in preventing disease. Side effects are rarely serious.

Did you know?

Before a vaccine is licensed in the USA, the Food and Drug Administration (FDA) reviews it for safety and effectiveness. The CDC then reviews all studies again, as well as the American Academy of Pediatrics and the American Academy of Family Physicians. Every lot of vaccine is tested before administration to the public, and the FDA regularly inspects vaccine manufacturers' facilities.

Did you know?

About 600,000 particles of skin are shed every hour by each human. If you live to age 70 years, you have shed 105 pounds of dead skin.

Did you know?

Limit intake of red meat and dairy products made with whole milk. Choose skim milk, low-fat or fat-free dairy products. Limit fried food. Use healthy oils when cooking.

Did you know?

Most strokes are caused when blood clots move to a blood vessel in the brain and block blood flow to that area. Thrombolytic therapy can be used to dissolve the clot quickly. If given within 3 hours of the first stroke symptoms, this therapy can help limit stroke damage and disability.

The relationship between air temperature and two measures of water vapour saturation of air. The relationship between air temperature and two measures of water vapour saturation of air.
Steric relationship of the stereoisomers of alanine to the absolute configuration of L Steric relationship of the stereoisomers of alanine to the absolute configuration of L
Titration Curve Titration Curve
Myocardial Oxygen supply and demand Myocardial Oxygen supply and demand
The growing demand for electrical power, carbon sequestration and storage must be a priority The growing demand for electrical power, carbon sequestration and storage must be a priority
Relationship between Latitude and Income per Capita Relationship between Latitude and Income per Capita
Video: Anatomy and Chemical Makeup of a Single Hair (Animation)

For a complete list of videos, visit our video library