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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.
What happens if demand curve interacts with the supply curve?
Then demand and supply are equal.
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
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
How can a company have a downward demand curve but still have marginal revenue equal price?
If the Demand Curve is separate from the MR=P curve, the company can not be of Perfect Competition. It can exist in any other market structure: Monopolistic Competition, Monopoly, or Imperfect Competition. In each of these three structures, the Demand Curve will always fall twice as fast as the MP=P=AR Curve. To answer your question in these terms, the company can have a downward sloping Demand Curve separate from the MR=P curve if it is not in the PC Market Structure.
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.
What happens if demand curve interacts with the supply curve?
Then demand and supply are equal.
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
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
How can a company have a downward demand curve but still have marginal revenue equal price?
If the Demand Curve is separate from the MR=P curve, the company can not be of Perfect Competition. It can exist in any other market structure: Monopolistic Competition, Monopoly, or Imperfect Competition. In each of these three structures, the Demand Curve will always fall twice as fast as the MP=P=AR Curve. To answer your question in these terms, the company can have a downward sloping Demand Curve separate from the MR=P curve if it is not in the PC Market Structure.
Why demand revenue curve of a firm under perfect competition is a?
In a perfectly competitive market, the demand revenue curve of a firm is perfectly elastic, meaning it is horizontal at the market price. This is because individual firms are price takers; they can sell any quantity of their product at the prevailing market price, but cannot influence that price. As a result, the firm's total revenue increases linearly with each additional unit sold, reflecting constant marginal revenue equal to the market price. Thus, the demand revenue curve reflects the firm's inability to set prices above the market level due to intense competition.
Is the price elasticity constant along the demand curve?
Price elasticity of demand is equal to the instantaneous slope of the demand curve, or the slope of the tangent line at any point on the demand curve. So if the demand curve is represented by a straight downward sloping line, then yes, price elasticity of demand is equal to the slope of the demand curve. Otherwise, the slope at any point on the curve is changing, and you can find the it by taking the derivative of the demand curve function, which will find the Price elasticity of demand at any single point. Thus, the Price Elasticity of Demand changes at different points on the demand curve.
What demand curve indicates the firm incurs a loss?
It's when the MR is not equal to MC. The firm in this case is unable to produce output the equals marginal revenue to marginal cost.
What is a unit elasticity demand curve?
A unit elasticity demand curve is one where the percentage change in quantity demanded is exactly equal to the percentage change in price, resulting in an elasticity coefficient of one. This means that if the price of a good increases by 1%, the quantity demanded decreases by 1%, and vice versa. On a graph, this type of demand curve typically appears as a rectangular hyperbola, indicating that total revenue remains constant as price changes. In practical terms, consumers are responsive to price changes, but the overall demand remains stable in terms of revenue.
What is the relationship between marginal utility curve and demand curve?
both are equal and complement to each other
What does a perfectly elastic demand curve mean?
it is the graphic representation of the changes in demand due to the availability of equal important substitude.
When can monopolist earn an economic profit?
A monopolist earns economic profit when the price charged is greater than their average total cost. To maximize profits, monopolies will produce at the output where marginal cost is equal to marginal revenue. To determine the price they will set, they choose the price on the demand curve that corresponds to this level of production.
