Ask Question
BusinessBusiness
5 January, 04:45

Explain why the marginal revenue curve facing a competitive firm differs from the marginal revenue curve facing a monopolist. unlike for perfectly competitive? firms, whose marginal revenue curves are the same as their individual demand? curves, a? monopolist's marginal revenue curve differs from its demand curve because

+5
Answers (1)
  1. 5 January, 07:12
    0
    The correct answer to this question is that:

    In a monopoly, "the monopolist must lower the price on all units to sell one more unit of output".

    This means that in a monopoly market, if we increase the amount of output without lowering the price, the marginal revenue decreases. Therefore marginal revenue is indirectly proportional to number of outputs.

    In a perfect competition however, the marginal revenue is constant to any amount of output.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Explain why the marginal revenue curve facing a competitive firm differs from the marginal revenue curve facing a monopolist. unlike for ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Which nation has a communist command economy? Cuba North Korea South Korea the United States
Answers (1)
At the beginning of 2020, Earth Co purchased a machine at a cost of $40,000. Earth Co expects the machine to remain useful for eight years (5,000 machine hours) and to have a residual value of $5,000.
Answers (1)
On a bank reconciliation, checks issued during the period that were not presented to the bank for payment before the bank statement was prepared are known as
Answers (1)
When Padgett Properties LLC was formed, Nova contributed land (value of $340,500 and basis of $85,125) and $170,250 cash, and Oscar contributed cash of $510,750. Both partners received a 50% interest in partnership profits and capital. a.
Answers (1)
Mighty Corporation manufactures end tables. Each end table requires. 50 direct labor hours in its production. Mighty Corporation has a direct labor rate of? $15 per direct labor hour.
Answers (1)
New Questions in Business
Mr. Jones is a single person who makes $45,000 in 2019. This year she paid $2,000 in student loan interest and $3,600 to her 401 (k) plan at work. Calculate the following a. Adjusted Gross Income. b.
Answers (1)
Middleton Corporation uses the normal costing system to determine the amount of overhead to be applied to production. The predetermined overhead rate for 2018 was $32.40 per DLH. Middleton estimated the annual activity level to be 7,500 DLHs.
Answers (1)
A student organization has been given permission to operate a pizza stand during the upcoming homecoming weekend. the stand will be located just outside the football stadium, making it accessible during the game.
Answers (1)
It ONLY makes sense to implement an ABC system when: A. ABC provides information to make better decisions. B. Its benefits exceed implementation costs. C. ABC traces more costs as direct costs. D.
Answers (1)
In your own words, describe the 3 functions of money.
Answers (1)
Home » Business » Explain why the marginal revenue curve facing a competitive firm differs from the marginal revenue curve facing a monopolist.
Sign Up Forgot Password?