« previous next »

Author Question: Describe the marginal revenue curve in relationship to the demand curve for a monopoly. Why is it ... (Read 201 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?

Many people have small pouches in their colons that bulge outward through weak spots. Each pouch is called a diverticulum. About 10% of Americans older than age 40 years have diverticulosis, which, when the pouches become infected or inflamed, is called diverticulitis. The main cause of diverticular disease is a low-fiber diet.

Did you know?

Aspirin is the most widely used drug in the world. It has even been recognized as such by the Guinness Book of World Records.

Did you know?

In the United States, there is a birth every 8 seconds, according to the U.S. Census Bureau's Population Clock.

Did you know?

One way to reduce acid reflux is to lose two or three pounds. Most people lose weight in the belly area first when they increase exercise, meaning that heartburn can be reduced quickly by this method.

Did you know?

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

Dose-response relationship. As the dose of a drug increases, a maximal response or plateau is ... Dose-response relationship. As the dose of a drug increases, a maximal response or plateau is ...
Hockey stick” curve Hockey stick” curve
Relationship between Latitude and Income per Capita Relationship between Latitude and Income per Capita
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)
Describe the Conceptual Forecasting Framework in your own words. Describe the Conceptual Forecasting Framework in your own words.
Describe the Conceptual Forecasting Framework in your own words. Describe the Conceptual Forecasting Framework in your own words.
Video: Bone elongation - processes at the epiphyseal plate

For a complete list of videos, visit our video library