explain with the aid of a properly labelled diagrams, the marginal revenue curve facing a perfectly competitive firm.
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explain with the aid of a properly labelled diagrams, the marginal revenue curve facing a perfectly...
With the aid of a diagram explain how a monopolist determines how much output to produce and what price to charge. (2) Briefly describe price discrimination of the first, second and third degrees. (3) Explain the difference between the demand curve facing a monopoly and the demand curve facing a perfectly competitive firm (4) Explain why under monopoly, price is greater than marginal revenue, while under perfect competition, price is equal to marginal revenue.
The demand curve facing a perfectly competitive firm is Select one: a. the same as its average revenue curve, but not the same as its marginal revenue curve. b. the same as its average revenue curve and its marginal revenue curve. c. the same as its marginal revenue curve, but not its average revenue curve. d. not the same as either its marginal revenue curve or its average revenue curve. e. not defined in terms of average or marginal revenue.
1.P _____ MR , for perfect competition only. In other words, the demand curve facing each perfectly competitive firm is ______ the marginal revenue curve. Total revenue curve is ________
____ 52. The demand curve facing Company ABC is perfectly elastic. What is its marginal revenue? a. Equal to the average revenue. b. Less than the price. c. Higher than the price. d. Higher than the average revenue. ____ 53. In the short run, which are most important in determining changes in output? a. marginal costs and revenue b. total costs and revenue c. average costs and revenue d. fixed costs
USE YOUR OWN WORDS FOR YOUR RESPONSE: Explain why the marginal revenue curve for a monopolist lies below its demand curve, rather than coinciding with the demand curve, as is the case for a perfectly competitive firm. Is it ever possible for a monopolist's marginal revenue curve to coincide with its demand curve?
The marginal revenue curve for a perfectly competitive firm is O A. vertical O B. a straight line coming out of the origin with a 45 degree slope. O C. downward sloping. O D. upward aloping CE horizontal A cartel is a group of firms acting together to output, price, and increase O A. increase; raise; marginal revenue O B. limit; lower; total revenue O c. limit: raise; economic profit O D. increase; raise; economic profit
2. If a firm could perfectly price discriminate: A. The marginal revenue curve would lie below the demand curve B. The marginal revenue curve would lie above the demand curve C. The marginal revenue curve would be the same as the demand curve D. There would be no marginal revenue function
What explains the horizontal demand curve for a Firm in a perfectly competitive market? How does this differ from the Market demand curve in a perfectly competitive market? Explain the behavior of marginal revenue in a Market compared to a Firm.
For a perfectly competitive firm, marginal revenue equals marginal cost at 250 units of output. At 250 units, price is greater than average variable cost. It necessarily follows that the Select one: a. marginal cost curve must have an upward-sloping portion and a downward-sloping portion. b. firm must be earning a profit. c. firm should continue to produce in the short run. d. firm should shut down its operation in the short run Next page Seo w
1. Under the perfectly competitive market structure, the demand curve of an individual firm is [ Select ] ["downward sloping", "unit-elastic", "perfectly inelastic", "perfectly elastic"] meaning that the demand curve is also the [ Select ] ["Marginal Cost curve", "average cost", "marginal revenue = Marginal costs", "marginal revenue curve"] 2. With a perfectly competitive firm the supply curve is: a) Marginal Product b) the marginal cost curve above the Average fixed Cost curve c) it has...