Between them exist a simple line of difference, a monopolist can sale more with less money CHACHA!
marginal revenue is negative where demand is inelastic
A monopolist will set production at a level where marginal cost is equal to marginal revenue.
Marginal Revenue = Marginal Cost; mark-up price to the demand curve.
marginal revenue
marginal revenue
marginal revenue is negative where demand is inelastic
A monopolist will set production at a level where marginal cost is equal to marginal revenue.
Marginal Revenue = Marginal Cost; mark-up price to the demand curve.
marginal revenue
marginal revenue
the point where the marginal cost curve intersects the marginal revenue curve
The pure monopolist's market situation differs from that of a competitive firm in that the monopolist's demand curve is downsloping, causing the marginal-revenue curve to lie below the demand curve. Like the competitive seller, the pure monopolist will maximize profit by equating marginal revenue and marginal cost. Barriers to entry may permit a monopolist to acquire economic profit even in the long run.
20-novanet answer
marginal revenue always lies behind the demand curve,and when demand increases marginal revenue also increases.demand curve is used to determine price of a commodity.
Total average pertains to annual revenue. While marginal revenue is equivalent to quarterly profits. The relationship between the two is only that one is the dividend of the other.
No, in a monopolistic market, marginal revenue is less than average revenue and price. This is because the monopolist must lower the price in order to sell more units, leading to a decline in revenue per unit.
The monopolist's profit maximizing level of output is found by equating its marginal revenue with its marginal cost, which is the same profit maximizing condition that a perfectly competitive firm uses to determine its equilibrium level of output. Indeed, the condition that marginal revenue equal marginal cost is used to determine the profit maximizing level of output of every firm, regardless of the market structure in which the firm is operating.