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WHY under perfect competition AR equals MR?
In a perfect competition, a firm can sell any amount of output at a given market price. It means firm's additional revenue(MR) from the sale of every additional unit of the commodity will be just equal to the market price (i.e. AR). Hence average revenue and marginal revenue become equal (AR=MR) and constant in that situation. Consequently the AR and MR curve will be same and would be horizontal or parallel to the x-axis.
Why average revanue is equal to marginal revanue in imperfect competiton?
Average Revenue (AR) is equals to Marginal Revenue (MR) in Perfect competition (PC) not imperfect competition. AR can be derived from the formula= Total revenue(TR) / Quantity. Since TR = Price x Quantity, the formula now will be Price x Quantity/ Quantity and naturally, AR equals to Price. Marginal Revenue can be measured by the formula= Change in total revenue/ Change in quantity (which is 1). Since the change in total revenue will be equals to the price of the product, MR in this case will be the Price of the product. From here we can see that Price = MR = AR = Demand.
Equation for marginal revenue and average revenue?
Marginal revenue (MR) is the incremental revenue for the last quantity sold, while average revenue (AR) is the mean revenue for all quantity sold. Mathematically: MR=dTR(Q)/dQ, e.i. MR is the first derivative of the total revenue function TR(Q) with respect to Q; while AR=TR(Q)/Q, e.i. is total revenue divided by Q. An interesting property of MR and AR is that when AR is falling, MR is less than AR; when AR is rising, MR is greater than AR. MR and AR intersect where dAR(Q)/dQ=0.
A monopolist will not always produce on the inelastic portion of its demand curve?
(inelastic portion is when MR = negative figure) Yes , because the optimum point is when MR equals to MC and there is no hell a way when MC is negative. Other than this, when the price is at the upper proportion of monopoly demand curve, the price is always higher and the monopoly firm will earn supernormal profit. Any answer which is reasonable will be accept.
Why supply curve of a monopoly equals to its marginal cost curve?
It's not
What is the name of the bearded man in the game of monopoly?
The bearded man in monopoly, his name is Mr. monopoly?
What is Mr Monopoly's name?
Moroo
WHY under perfect competition AR equals MR?
In a perfect competition, a firm can sell any amount of output at a given market price. It means firm's additional revenue(MR) from the sale of every additional unit of the commodity will be just equal to the market price (i.e. AR). Hence average revenue and marginal revenue become equal (AR=MR) and constant in that situation. Consequently the AR and MR curve will be same and would be horizontal or parallel to the x-axis.
Why average revanue is equal to marginal revanue in imperfect competiton?
Average Revenue (AR) is equals to Marginal Revenue (MR) in Perfect competition (PC) not imperfect competition. AR can be derived from the formula= Total revenue(TR) / Quantity. Since TR = Price x Quantity, the formula now will be Price x Quantity/ Quantity and naturally, AR equals to Price. Marginal Revenue can be measured by the formula= Change in total revenue/ Change in quantity (which is 1). Since the change in total revenue will be equals to the price of the product, MR in this case will be the Price of the product. From here we can see that Price = MR = AR = Demand.
What is the name of the little Monopoly man in the Monopoly game?
He is Monopoly's mascot, originally named Rich Uncle Pennybags, aka Frank Moneybags, but has since been rechristened as simply 'Mr Monopoly'.
What is the name of the caricature in Monopoly?
Mr. Moneybags
Equation for marginal revenue and average revenue?
Marginal revenue (MR) is the incremental revenue for the last quantity sold, while average revenue (AR) is the mean revenue for all quantity sold. Mathematically: MR=dTR(Q)/dQ, e.i. MR is the first derivative of the total revenue function TR(Q) with respect to Q; while AR=TR(Q)/Q, e.i. is total revenue divided by Q. An interesting property of MR and AR is that when AR is falling, MR is less than AR; when AR is rising, MR is greater than AR. MR and AR intersect where dAR(Q)/dQ=0.
Is Mr the same as Ar?
I doubt it, I don't know what Mr is..
When p equals ar equals mr equals ac equals mc?
When price (p), average revenue (ar), marginal revenue (mr), average cost (ac), and marginal cost (mc) are equal, a firm is in a state of long-run equilibrium in perfect competition. In this scenario, the firm earns normal profits, as total revenue equals total cost, and there is no incentive for firms to enter or exit the market. This equality indicates that firms are maximizing their profits while producing at the most efficient scale. Consequently, resources are allocated efficiently in the market.
Ar is an area function for a circle Find A2 when Ar equals 3.14r2?
12.56
Ar is an area function for a circle Find A1 when Ar equals 3.14r2?
3.14
A monopolist will not always produce on the inelastic portion of its demand curve?
(inelastic portion is when MR = negative figure) Yes , because the optimum point is when MR equals to MC and there is no hell a way when MC is negative. Other than this, when the price is at the upper proportion of monopoly demand curve, the price is always higher and the monopoly firm will earn supernormal profit. Any answer which is reasonable will be accept.
