When is the marginal revenue from making a sale less than the price of the product?
- When is the marginal revenue from making a sale less than the price of the product?
Homework Answers
Marginal revenue is less than price of the product when the demand curve is downward sloping. E.g consider the case of monopoly or monopolistic competitive firm.
A monopolist faces a downward sloping demand curve. In order to sell one additional unit of good it has to reduce its price for all the units that it is selling (even for the previous units sold) and therefore marginal revenue stays less than price of the product.
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When is the marginal revenue from making a sale less than the
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Question 15 For a perfectly competitive firm, price is less than marginal revenue at all output...
Question 15 For a perfectly competitive firm, price is less than marginal revenue at all output levels price exceeds marginal revenue at all output levels price is less than marginal revenue only at the profit-maximizing quantity price equals marginal revenue only at the profit-maximizing quantity price equals marginal revenue at all output levels
charterll from the sale of output input is known as The change in revenue that results...
charterll from the sale of output input is known as The change in revenue that results from th by one additional unit of an input is ki a) Total physical product b) Profit c) Marginal physical product d) Marginal revenue product in the market where it sells its For a firm that is a price-taker in the market where it output, a) the menu of price-quantity combinations is given negatively-sloped demand curve for output. b) marginal is always less than...
1.Value of marginal product differs from marginal revenue product in each of the following except __________....
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For a monopolist, why is marginal revenue less than price for every level of output except...
For a monopolist, why is marginal revenue less than price for every level of output except the first?
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if a firm is in monopolistic competition, then their marginal revenue: will be less than the...
if a firm is in monopolistic competition, then their marginal revenue: will be less than the price will be above the price O will be the same as price will be the same as marginal cost no matter how much is produced. the firm will expand and earn larger and larger profits. O profits will continue because barriers to entry are high. other firms will imitate the firm, causing their cost to increase until price is equal to average cost...
(1) (2) (3) (4) Units of Quantity of Product Factor X Output Price Marginal Revenue Product...
(1) (2) (3) (4) Units of Quantity of Product Factor X Output Price Marginal Revenue Product 0 $12 o 1 10 $12 (A) 2 18 $12 (B) 3 25 $12 (C) 28 $12 (D) price, thus we are dealing with a(n) The data show that marginal revenue is competitive firm. O greater than; perfectly equal to perfectly o less than; perfectly O equal to; imperfectly
If a perfectly competitive firm's marginal revenue was less than its marginal cost, u it would...
If a perfectly competitive firm's marginal revenue was less than its marginal cost, u it would raise its price in order to increase its profits. it would decrease output. U it must be currently earning economic losses. both (a) and (c) are true.
15. When marginal cost is less than average total cost, a. marginal cost must be falling....
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A retailer wants to see if a red "Sale" sign brings in less revenue than the same "Sale" sign in blue. The data below shows the revenue in thousands of dollars that was achieved for various days when the retailer decided to put the red "Sale" sign up and days when the retailer decided to put the blue Sale sign up. Red: 2.1, 3.4, 3.9, 2.5, 3.3.2.4. 2.4. 2.9. 1.2 2.9 Blue: 3, 62, 43, 43, 48, 3.4, 2.9, 2.1,...
Question 15 For a perfectly competitive firm, price is less than marginal revenue at all output levels price exceeds marginal revenue at all output levels price is less than marginal revenue only at the profit-maximizing quantity price equals marginal revenue only at the profit-maximizing quantity price equals marginal revenue at all output levels
charterll from the sale of output input is known as The change in revenue that results from th by one additional unit of an input is ki a) Total physical product b) Profit c) Marginal physical product d) Marginal revenue product in the market where it sells its For a firm that is a price-taker in the market where it output, a) the menu of price-quantity combinations is given negatively-sloped demand curve for output. b) marginal is always less than...
if a firm is in monopolistic competition, then their marginal revenue: will be less than the price will be above the price O will be the same as price will be the same as marginal cost no matter how much is produced. the firm will expand and earn larger and larger profits. O profits will continue because barriers to entry are high. other firms will imitate the firm, causing their cost to increase until price is equal to average cost...
(1) (2) (3) (4) Units of Quantity of Product Factor X Output Price Marginal Revenue Product 0 $12 o 1 10 $12 (A) 2 18 $12 (B) 3 25 $12 (C) 28 $12 (D) price, thus we are dealing with a(n) The data show that marginal revenue is competitive firm. O greater than; perfectly equal to perfectly o less than; perfectly O equal to; imperfectly
If a perfectly competitive firm's marginal revenue was less than its marginal cost, u it would raise its price in order to increase its profits. it would decrease output. U it must be currently earning economic losses. both (a) and (c) are true.
15. When marginal cost is less than average total cost, a. marginal cost must be falling. b. average variable cost must be falling. c. average total cost is falling. d. average total cost is rising. 16. Which of the following is not a characteristic of a competitive market? a. Buyers and sellers are price takers. b. Each firm sells a virtually identical product. c. Entry is limited d. Each firm chooses an output level that maximizes profits. 17. If a...
A retailer wants to see if a red "Sale" sign brings in less revenue than the same "Sale" sign in blue. The data below shows the revenue in thousands of dollars that was achieved for various days when the retailer decided to put the red "Sale" sign up and days when the retailer decided to put the blue Sale sign up. Red: 2.1, 3.4, 3.9, 2.5, 3.3.2.4. 2.4. 2.9. 1.2 2.9 Blue: 3, 62, 43, 43, 48, 3.4, 2.9, 2.1,...
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