What is the shape of a monopolist's demand curve and marginal revenue curve?
What will be an ideal response?
A monopolist's demand curve and marginal revenue curve are both downward sloping. The two curves begin at the same point on the price axis because the price of the first unit is the marginal revenue from selling the first unit. Thereafter, marginal revenue is below price because the monopolist must lower the price of all units of the good that it sells in order to sell additional units of the good.
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Gene plays another hour of computer games rather than study for the hour even though he knows that the next day, when he takes his test, he will regret his decision. Gene is showing ________
A) the endowment effect B) bounded rationality C) bounded self-interest D) bounded will power
Refer to Table 14-5. What is the Nash equilibrium in this game?
A) Both Ming and Henri offer free pickup and delivery. B) There is no Nash equilibrium. C) Henri offers free pickup and delivery, but Ming does not. D) Ming offers free pickup and delivery, but Henri does not.