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Explain why the marginal revenue(MR) is always less than the average revenue (AR)?

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16y ago

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Relationship between Marginal revenue and Demand curve?

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.


Where is profit maximized on a graph?

Profit is maximized on a graph where the marginal cost curve intersects the marginal revenue curve.


How can one calculate marginal revenue from a demand curve?

To calculate marginal revenue from a demand curve, you can find the slope of the demand curve at a specific quantity using calculus or by taking the first derivative of the demand function. The marginal revenue is then equal to the price at that quantity minus the slope of the demand curve multiplied by the quantity.


Discuss equilibrium of a firm under monopoly what are the conditions of equilibrium?

when marginal revenue equal to marginal cost,when marginal cost curve cut marginal revenue curve from the below and when price is greter than average total cost


The price charged by a profit-maximizing monopolist occurs at?

the point where the marginal cost curve intersects the marginal revenue curve


How can one determine the marginal revenue curve for a business?

To determine the marginal revenue curve for a business, you can calculate the change in total revenue from selling one additional unit of a product. This can be done by subtracting the total revenue from selling the current quantity of products from the total revenue from selling one more unit. The resulting values can then be plotted on a graph to create the marginal revenue curve.


What is the shape of the marginal-revenue curve if the total-revenue curve is a positively sloped straight line?

it will be parallel to horizantal axis


What is the shape of marginal revenue curve if the total revenue curve have concave shape?

my name is sheela sheela ki jawani


What happens when the slope of the total revenue curve is equal to the slope of the total cost curve?

a. monopoly profit is maximized. b. marginal revenue equals marginal cost. c. the marginal cost curve intersects the total average cost curve. d. the total cost curve is at its minimum. e. Both A and B


What is the condition of equilibrium for monopolist?

Marginal Revenue = Marginal Cost; mark-up price to the demand curve.


How can one determine the marginal revenue on a graph?

To determine the marginal revenue on a graph, you can find the slope of the revenue curve at a specific point. The marginal revenue is the change in total revenue that results from selling one additional unit of a product. It is calculated by finding the derivative of the revenue function.


If marginal revenue is less than average revenue will the demand curve be downward sloping?

This question reflects a fundamental misunderstanding of supply and demand. Marginal revenue and average revenue are related to a firm's cost function, and are thus connected to SUPPLY. They have nothing to do with a demand curve in classical economics, which is the marginal benefit to the CONSUMER of being in the market.