Question

Moving to another question will save this response. stion 7 Price, Marginal o Revenue, Total Revenue Price, Marginal o Revenue, Total Revenue Quantity Demanded Type here to search Quantity Demanded

Answer 1

from the figure 1 it can be observed that the price is constant and this actually means the total revenue curve will be a straight line because it increases proportionately with each unit and when the quantity is zero the revenue is zero and therefore the line A of figure 1 represents the the total revenue curve. In the figure 2 C is marginal revenue curve as we can see the the curve is going below the axis which is negative side and at this point we can see that line A starts to decrease and therefore it can be mentioned that it is the total revenue curve because when the marginal revenue is decreasing the total revenue also decreases on the whole and until then it is increasing

Therefore (a) total revenue in both figures is the answer to this question

It can actually be mentioned that if the company is perfectly competitive then it can be mentioned that the price would be at a point where the marginal revenue is equal to the marginal cost and it is $20 and if it is a Monopoly it would be extended to the demand curve and the price should be $25 and therefore in this regard

(a) $20, which is lower than what the price would have been in the industry was a monopoly is the answer to this question