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How can the demand curve be derived using the marginal utility theory?
Marginal utility is the key concept underline demand .The height of a demand curve reflects marginal utility.The marginal utility curve resembles the demand curve. So, it is through the marginal utility we get the demand curve.
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.
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.
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.
Intuitive derivation of individual demand curve using marginal utility?
how is a demand curve derived from individual demand curve ?
How can the demand curve be derived using the marginal utility theory?
Marginal utility is the key concept underline demand .The height of a demand curve reflects marginal utility.The marginal utility curve resembles the demand curve. So, it is through the marginal utility we get the demand curve.
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.
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.
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.
Intuitive derivation of individual demand curve using marginal utility?
how is a demand curve derived from individual demand curve ?
What are typical shapes of marginal-benefit curves?
Marginal Benefit curve is usually downward sloping, while Marginal Cost is usually upward sloping.
What happens to marginal utility when you move down on the demand curve?
as we move down on the demand curve, marginal utility of a commodity starts declining bcoz of the law of diminishing marginal utility.after getting full satisfaction from a commodity both demand and marginal utility of that commodity decreases.
If marginal revenue product capital increases the demand or supply curve?
Demand.
Does monopolistically competitive firms have horizontal marginal cost curve?
No it does not. Only Perfectly Competitive firms have a horizontal Marginal Cost curve, which is also there demand curve.
Is there any relationship between marginal revenue curve and demand curve?
Yes, there is a relationship between the marginal revenue curve and the demand curve. For a monopolistic firm, the marginal revenue curve lies below the demand curve because the firm must lower the price on all units sold to sell additional units, resulting in diminishing marginal revenue. In contrast, for a perfectly competitive firm, the marginal revenue curve is horizontal and coincides with the demand curve, as the firm can sell any quantity at the market price without affecting it. Thus, while the two curves are related, their positions and shapes differ based on the market structure.
What is the demand curve for output of a perfectly competitive firm?
Demand = Price = Marginal Cost.
Why the marginal revenues curve is always half of the demand curveexplain graphically and algebrically?
Firms in most cases opt to select prices in the elastic regions of their demand curve. This fact explains why marginal revenue curve is always below.
