Respuesta :
A seller's incentive to increase production is reflected in its marginal revenue curve. As long as marginal revenue > Marginal cost, sellers would increase production and as MR<MC, sellers start decreasing production.
The marginal revenue curve is a horizontal line at the marketplace charge, implying a perfectly elastic call for and is equal to the demand curve. beneath monopoly, one firm is the sole seller within the market with a differentiated product. Marginal sales is a central idea in microeconomics that describes the extra overall sales generated by growing product sales by using 1 unit.
To calculate the marginal revenue, a corporation divides the trade in its general sales via the change of its general output amount. Marginal revenue is equal to the selling fee of a single extra item that becomes sold. below are the marginal revenue components: Marginal sales = trade-in revenue/alternate in amount.
The marginal revenue curve for the monopoly firm lies under its call for the curve. It shows the extra sales received from promoting a further unit. the word that, as constantly, marginal values are plotted at the midpoints of the respective durations.
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