Why isn't the entirety of the marginal cost curve the same as the supply curve?
Q. Why isn't the entirety of the marginal cost curve the same as the supply curve? I think my professor is trying to kill me.
Asked by jeccalynnp - Thu Feb 19 02:48:49 2009 - - 1 Answers - 0 Comments
A. I believe this has to do with the fact that the point where the average cost curve is minimized (aka where supply curve begins on the marginal cost curve) is the shutdown point since it is also where average cost is equal to marginal cost. At any lower quantity the firm would simply shut down, so there is no supply curve because there is simply no production by the firm.
Answered by Tangent - Thu Feb 19 03:03:42 2009
Q. Why isn't the entirety of the marginal cost curve the same as the supply curve? I think my professor is trying to kill me.
Asked by jeccalynnp - Thu Feb 19 02:48:49 2009 - - 1 Answers - 0 Comments
A. I believe this has to do with the fact that the point where the average cost curve is minimized (aka where supply curve begins on the marginal cost curve) is the shutdown point since it is also where average cost is equal to marginal cost. At any lower quantity the firm would simply shut down, so there is no supply curve because there is simply no production by the firm.
Answered by Tangent - Thu Feb 19 03:03:42 2009
Marginal cost curve vs. marginal product of the variable resource?
Q. Explain why the marginal cost curve must increase if the marginal product of the variable resource is decreasing.
Asked by gemini00007 - Mon Mar 17 22:58:20 2008 - - 1 Answers - 0 Comments
A. marginal product initially increases with production, n then after a certain level starts decreasing, marginal cost on the other hand increases with initial production, then begins to decrease n again increases after a certain level of production. the reason is Law of Variable Proportion.
Answered by Assassin - Mon Mar 17 23:09:20 2008
Q. Explain why the marginal cost curve must increase if the marginal product of the variable resource is decreasing.
Asked by gemini00007 - Mon Mar 17 22:58:20 2008 - - 1 Answers - 0 Comments
A. marginal product initially increases with production, n then after a certain level starts decreasing, marginal cost on the other hand increases with initial production, then begins to decrease n again increases after a certain level of production. the reason is Law of Variable Proportion.
Answered by Assassin - Mon Mar 17 23:09:20 2008
Marginal Cost Curve in the Short Run?
Q. Suppose the marginal cost curve in the short run first decreases, then reaches a minimum, and then increases. If we are at an output where marginal cost is decreasing, then: a) Marginal product must be increasing. b) Average variable cost must be decreasing c) Average total cost must be increasing d) both a and b are correct.
Asked by Guesser - Sun Jul 27 14:21:28 2008 - - 1 Answers - 0 Comments
A. d) both a and b are correct. Marginal product is the inverse of marginal cost, and if marginal cost is decreasing, each good costs less to make, so average variable cost must also be decreasing
Answered by Danajaan - Sun Jul 27 15:20:46 2008
Q. Suppose the marginal cost curve in the short run first decreases, then reaches a minimum, and then increases. If we are at an output where marginal cost is decreasing, then: a) Marginal product must be increasing. b) Average variable cost must be decreasing c) Average total cost must be increasing d) both a and b are correct.
Asked by Guesser - Sun Jul 27 14:21:28 2008 - - 1 Answers - 0 Comments
A. d) both a and b are correct. Marginal product is the inverse of marginal cost, and if marginal cost is decreasing, each good costs less to make, so average variable cost must also be decreasing
Answered by Danajaan - Sun Jul 27 15:20:46 2008
In economics why does a marginal cost curve intersect an average total cost curve at its lowest point?
Q. In economics why does a marginal cost curve intersect an average total cost curve at its lowest point?
Asked by nomadman14 - Wed Mar 14 17:09:39 2007 - - 1 Answers - 0 Comments
A. When marginal cost is less than average total cost, then the cost of producing an additional widget is less than the average cost of the widgets produced so far. This means by producing an extra widget, we are lowering the average cost of a widget. Therefore if MC < ATC, ATC must be decreasing. The exact opposite holds, ie. if MC > ATC, ATC must be increasing. Thus ATC is decreasing while MC < ATC, and increasing when MC > ATC. This means when MC = ATC, ATC must be at a minimum (because ATC was decreasing up to that point and increasing after that point).
Answered by Bill Lumbergh - Fri Mar 16 03:10:42 2007
Q. In economics why does a marginal cost curve intersect an average total cost curve at its lowest point?
Asked by nomadman14 - Wed Mar 14 17:09:39 2007 - - 1 Answers - 0 Comments
A. When marginal cost is less than average total cost, then the cost of producing an additional widget is less than the average cost of the widgets produced so far. This means by producing an extra widget, we are lowering the average cost of a widget. Therefore if MC < ATC, ATC must be decreasing. The exact opposite holds, ie. if MC > ATC, ATC must be increasing. Thus ATC is decreasing while MC < ATC, and increasing when MC > ATC. This means when MC = ATC, ATC must be at a minimum (because ATC was decreasing up to that point and increasing after that point).
Answered by Bill Lumbergh - Fri Mar 16 03:10:42 2007
Why does the marginal cost curve cut the average total cost curve at its minimum point?
Q. Why does the marginal cost curve cut the average total cost curve at its minimum point?
Asked by Toves - Mon Apr 9 22:43:29 2007 - - 1 Answers - 0 Comments
A. When marginal cost is below average total cost, the cost of an additional unit is lower than the average cost of all the units, so it causes average total cost to fall. If marginal cost is greater, the cost of an additional unit is higher, so average total cost will rise. So when they are equal, it will stay the same. Think of it like your GPA. Say ATC=your GPA (the average of all your grades), and MC=the grade in your next course (one particular grade). If you have a B average and get a C in your next course, your GPA will fall (like when MC is lower than ATC). If you have a B average and get an A, your GPA will rise (like when MC is higher than ATC). If you get a B in your next course, there won't be any change because it's the… [cont.]
Answered by Becca - Tue Apr 10 01:47:06 2007
Q. Why does the marginal cost curve cut the average total cost curve at its minimum point?
Asked by Toves - Mon Apr 9 22:43:29 2007 - - 1 Answers - 0 Comments
A. When marginal cost is below average total cost, the cost of an additional unit is lower than the average cost of all the units, so it causes average total cost to fall. If marginal cost is greater, the cost of an additional unit is higher, so average total cost will rise. So when they are equal, it will stay the same. Think of it like your GPA. Say ATC=your GPA (the average of all your grades), and MC=the grade in your next course (one particular grade). If you have a B average and get a C in your next course, your GPA will fall (like when MC is lower than ATC). If you have a B average and get an A, your GPA will rise (like when MC is higher than ATC). If you get a B in your next course, there won't be any change because it's the… [cont.]
Answered by Becca - Tue Apr 10 01:47:06 2007
Economics question: why does the marginal cost curve intersect the average cost curve at its minimum point?
Q. Economics question: why does the marginal cost curve intersect the average cost curve at its minimum point?
Asked by great2bealive85 - Thu Mar 29 03:44:38 2007 - - 1 Answers - 0 Comments
A. It intersects at the minimum because it separates economies of scale from diseconomies of scale. Marginal cost is above average cost, so average costs are increasing as quantity increases.
Answered by dinodiger01 - Fri Mar 30 01:16:01 2007
Q. Economics question: why does the marginal cost curve intersect the average cost curve at its minimum point?
Asked by great2bealive85 - Thu Mar 29 03:44:38 2007 - - 1 Answers - 0 Comments
A. It intersects at the minimum because it separates economies of scale from diseconomies of scale. Marginal cost is above average cost, so average costs are increasing as quantity increases.
Answered by dinodiger01 - Fri Mar 30 01:16:01 2007
Why is is that the Marginal Cost curve always intersects the AVC and AFC at the bottom?
Q. Why is is that the Marginal Cost curve always intersects the AVC and AFC at the bottom?
Asked by Kevin - Wed Oct 29 20:07:31 2008 - - 1 Answers - 0 Comments
A. It intersects the AVC and ATC at the bottom. Because of economies of scale and eventually diseconomies of scale, marginal costs fall as productivity increases. When productivity is at its maximum point marginal costs are at their minimum. When productivity starts to decline marginal costs start to rise. By definition, when marginal costs are less than average costs, the average declines. When marginal costs are greater than average costs, the average increases. Therefore, MC always intersects the AVC and ATC curves at their minimum points.
Answered by Donnie - Wed Oct 29 20:23:34 2008
Q. Why is is that the Marginal Cost curve always intersects the AVC and AFC at the bottom?
Asked by Kevin - Wed Oct 29 20:07:31 2008 - - 1 Answers - 0 Comments
A. It intersects the AVC and ATC at the bottom. Because of economies of scale and eventually diseconomies of scale, marginal costs fall as productivity increases. When productivity is at its maximum point marginal costs are at their minimum. When productivity starts to decline marginal costs start to rise. By definition, when marginal costs are less than average costs, the average declines. When marginal costs are greater than average costs, the average increases. Therefore, MC always intersects the AVC and ATC curves at their minimum points.
Answered by Donnie - Wed Oct 29 20:23:34 2008
Is Average Cost curve = Supply Curve or Marginal Cost ? Explain please?
Q. I'm studying economics & business. One of the things that puzzle me is that at first our Prof. told us that Average Revenue = P and that the Average Revenue Curve is the Demand Curve He told us that the Marginal Cost Curve is the Supply curve. Now, he says that he got confused and it really is the Average Cost (ATC) because it's the minimum of which the factors of production cost to be employed Can you please elaborate as much as you can which is right and wrong ?
Asked by Ahmed F - Thu May 8 16:36:29 2008 - - 1 Answers - 0 Comments
A. How much can a company sells a particular product on average is the demand your products have in the market. Assuming that this is a 'trading' activities than the average cost of your supplier is your supply curve.
Answered by adiwsusanto - Fri May 9 02:10:00 2008
Q. I'm studying economics & business. One of the things that puzzle me is that at first our Prof. told us that Average Revenue = P and that the Average Revenue Curve is the Demand Curve He told us that the Marginal Cost Curve is the Supply curve. Now, he says that he got confused and it really is the Average Cost (ATC) because it's the minimum of which the factors of production cost to be employed Can you please elaborate as much as you can which is right and wrong ?
Asked by Ahmed F - Thu May 8 16:36:29 2008 - - 1 Answers - 0 Comments
A. How much can a company sells a particular product on average is the demand your products have in the market. Assuming that this is a 'trading' activities than the average cost of your supplier is your supply curve.
Answered by adiwsusanto - Fri May 9 02:10:00 2008
Is it true that the marginal cost curve will also pass through the minimum point of average variable cost.Why?
Q. Is it true that the marginal cost curve will also pass through the minimum point of average variable cost.Why?
Asked by Staz - Mon Jun 22 23:49:42 2009 - - 1 Answers - 0 Comments
A. yes, In the short-run MC passes through AVC at its minimum point MC lies to the to the left below the AVC min point and to the right above the min point. for ex suppose the AVC cost is decreasing. Then the MC will be less than the AC up to that point. The MC is less than the AVC when AVC are decreasing When AVC are increasing the MC will be more than the AC up to that poing. The MC is more than the AVC when AVC is increasing
Answered by Mallory - Tue Jun 23 01:21:17 2009
Q. Is it true that the marginal cost curve will also pass through the minimum point of average variable cost.Why?
Asked by Staz - Mon Jun 22 23:49:42 2009 - - 1 Answers - 0 Comments
A. yes, In the short-run MC passes through AVC at its minimum point MC lies to the to the left below the AVC min point and to the right above the min point. for ex suppose the AVC cost is decreasing. Then the MC will be less than the AC up to that point. The MC is less than the AVC when AVC are decreasing When AVC are increasing the MC will be more than the AC up to that poing. The MC is more than the AVC when AVC is increasing
Answered by Mallory - Tue Jun 23 01:21:17 2009
Economics- why does marginal cost curve = supply curve?
Q. In a perfectly competitive firm, when and why does this occur?
Asked by boopydoop22 - Sun May 13 00:54:19 2007 - - 2 Answers - 0 Comments
A. b/c marginal revenue is equal to price
Answered by Darth Severus - Sun May 13 01:06:54 2007
Q. In a perfectly competitive firm, when and why does this occur?
Asked by boopydoop22 - Sun May 13 00:54:19 2007 - - 2 Answers - 0 Comments
A. b/c marginal revenue is equal to price
Answered by Darth Severus - Sun May 13 01:06:54 2007
Marginal cost curve?
Q. Why is the marginal cost curve U-Shaped? I know that initially marginal cost falls, and eventually increases again, but I can't figure out why this is. If anyone could help, I'd be grateful.
Asked by Mr Economist - Thu Apr 3 18:34:41 2008 - - 1 Answers - 0 Comments
A. This is because after the initial reduction in marginal cost, the benefits of efficieny and specialization are eventually exhausted. As the result, diminishing returns set in and begin to show up on the marginal cost curve...hence the curved appearance. You could think it of in this way: That the lowest marginal cost shown on the marginal cost curve is comparable to 100% efficiency, or very close to it. After that, as you add to your marginal cost by hiring additional workers, for example, in an effort to produce more per day, you can accomplish the higher output, but at a less efficient ratio between cost and production output. I hope this helps. Regards, The Rambler
Answered by Rambler - Thu Apr 3 18:56:30 2008
Q. Why is the marginal cost curve U-Shaped? I know that initially marginal cost falls, and eventually increases again, but I can't figure out why this is. If anyone could help, I'd be grateful.
Asked by Mr Economist - Thu Apr 3 18:34:41 2008 - - 1 Answers - 0 Comments
A. This is because after the initial reduction in marginal cost, the benefits of efficieny and specialization are eventually exhausted. As the result, diminishing returns set in and begin to show up on the marginal cost curve...hence the curved appearance. You could think it of in this way: That the lowest marginal cost shown on the marginal cost curve is comparable to 100% efficiency, or very close to it. After that, as you add to your marginal cost by hiring additional workers, for example, in an effort to produce more per day, you can accomplish the higher output, but at a less efficient ratio between cost and production output. I hope this helps. Regards, The Rambler
Answered by Rambler - Thu Apr 3 18:56:30 2008
why will a perfectly competitive firm will always produce in the upward segment of the marginal cost curve?
Q. could you also explain the graph?
Asked by Stephen L - Mon Mar 12 16:17:34 2007 - - 3 Answers - 0 Comments
A. The marginal cost curve slopes downward, reaches a minimum, then goes back up. If a firm produces where it crosses marginal revenue and is sloping downward, it will produce only units that cost more to make than they earn in revenue. The firm will lose money and eventually go out of business. When it produces at the point where marginal cost is going up, it is able to turn a profit.
Answered by theeconomicsguy - Mon Mar 12 16:21:39 2007
Q. could you also explain the graph?
Asked by Stephen L - Mon Mar 12 16:17:34 2007 - - 3 Answers - 0 Comments
A. The marginal cost curve slopes downward, reaches a minimum, then goes back up. If a firm produces where it crosses marginal revenue and is sloping downward, it will produce only units that cost more to make than they earn in revenue. The firm will lose money and eventually go out of business. When it produces at the point where marginal cost is going up, it is able to turn a profit.
Answered by theeconomicsguy - Mon Mar 12 16:21:39 2007
drawing a marginal cost curve for a hypothetical economics exercise- why doesn't mine look right?!?
Q. Hello please could you help me draw a marginal cost curve: i have a hypothetical question where the variable cost is $1 up to x=50, then the variable cost increases to $2 per unit, until x=100... the fixed cost stays the same throughout ($20). my attempt is such that my marginal cost curve looks like a straight horizontal line at F(x) = 1 up to x=50 then jumps up a unit to f(x) = 2... so essentially it looks like this: ___--- a) That doesn't seem right to me - have I done something terribly wrong?! Shouldn't i be able to write the whole thing in just one function, and shouldn't it be a nice smooth curve? b) on the y axis of a marginal cost curve, should it be Cost (per unit) or Cost (total) ? I really appreciate your help :-)
Asked by UltraViolet - Sun Nov 30 08:06:59 2008 - - 1 Answers - 0 Comments
A. Discontinuous Jump is normal given your conditions. You are asked for marginal cost curve, and that is what you drew. If you draw a total curve, it will be continuous, but will have a kink at x=50 where it switches from slope of 1 to 2.
Answered by Cthulhu fhtagn! - Sun Nov 30 16:43:24 2008
Q. Hello please could you help me draw a marginal cost curve: i have a hypothetical question where the variable cost is $1 up to x=50, then the variable cost increases to $2 per unit, until x=100... the fixed cost stays the same throughout ($20). my attempt is such that my marginal cost curve looks like a straight horizontal line at F(x) = 1 up to x=50 then jumps up a unit to f(x) = 2... so essentially it looks like this: ___--- a) That doesn't seem right to me - have I done something terribly wrong?! Shouldn't i be able to write the whole thing in just one function, and shouldn't it be a nice smooth curve? b) on the y axis of a marginal cost curve, should it be Cost (per unit) or Cost (total) ? I really appreciate your help :-)
Asked by UltraViolet - Sun Nov 30 08:06:59 2008 - - 1 Answers - 0 Comments
A. Discontinuous Jump is normal given your conditions. You are asked for marginal cost curve, and that is what you drew. If you draw a total curve, it will be continuous, but will have a kink at x=50 where it switches from slope of 1 to 2.
Answered by Cthulhu fhtagn! - Sun Nov 30 16:43:24 2008
Please help me with a marginal cost curve!?
Q. Drawing a marginal cost curve for a hypothetical economics exercise- why doesn't mine look right?!? Hello please could you help me draw a marginal cost curve: i have a hypothetical question where the variable cost is $1 up to x=50, then the variable cost increases to $2 per unit, until x=100... the fixed cost stays the same throughout ($20). my attempt is such that my marginal cost curve looks like a straight horizontal line at F(x) = 1 up to x=50 then jumps up a unit to f(x) = 2... so essentially it looks like this: ___--- a) That doesn't seem right to me - have I done something terribly wrong?! Shouldn't i be able to write the whole thing in just one function, and shouldn't it be a nice smooth curve? b) on the y axis of a marginal… [cont.]
Asked by UltraViolet - Sun Nov 30 09:05:39 2008 - - 1 Answers - 0 Comments
Q. Drawing a marginal cost curve for a hypothetical economics exercise- why doesn't mine look right?!? Hello please could you help me draw a marginal cost curve: i have a hypothetical question where the variable cost is $1 up to x=50, then the variable cost increases to $2 per unit, until x=100... the fixed cost stays the same throughout ($20). my attempt is such that my marginal cost curve looks like a straight horizontal line at F(x) = 1 up to x=50 then jumps up a unit to f(x) = 2... so essentially it looks like this: ___--- a) That doesn't seem right to me - have I done something terribly wrong?! Shouldn't i be able to write the whole thing in just one function, and shouldn't it be a nice smooth curve? b) on the y axis of a marginal… [cont.]
Asked by UltraViolet - Sun Nov 30 09:05:39 2008 - - 1 Answers - 0 Comments
I am having trouble with Marginal Cost curves in economics for perfect competition, help?
Q. I do not understand how marginal cost is equal to the short run short run average total cost in a perfectly competitive firm. The book is here, but I just don't know! help?
Asked by YoItsTravo - Fri Oct 9 21:45:51 2009 - - 1 Answers - 0 Comments
A. there is no relationship between average and marginal cost; u can read introduction to economics textbook; that will be easy for u to understand
Answered by Victoria Cool - Fri Oct 9 23:54:21 2009
Q. I do not understand how marginal cost is equal to the short run short run average total cost in a perfectly competitive firm. The book is here, but I just don't know! help?
Asked by YoItsTravo - Fri Oct 9 21:45:51 2009 - - 1 Answers - 0 Comments
A. there is no relationship between average and marginal cost; u can read introduction to economics textbook; that will be easy for u to understand
Answered by Victoria Cool - Fri Oct 9 23:54:21 2009
The firm's short run supply curve runs up the marginal cost curve...?
Q. A. from the shut-down point all the way up the curve. B. to the shut-down point. C. to the break-even point. D. from the break-even point all the way up the curve.
Asked by SteveS - Thu Oct 8 09:19:06 2009 - - 1 Answers - 0 Comments
Q. A. from the shut-down point all the way up the curve. B. to the shut-down point. C. to the break-even point. D. from the break-even point all the way up the curve.
Asked by SteveS - Thu Oct 8 09:19:06 2009 - - 1 Answers - 0 Comments
Which of the following affect both marginal and average total cost curve of a firm in the short run?
Q. a. A change in profit taxes b. A change in property taxes c. A change in payroll taxes d. All
Asked by Lydia - Thu Jun 25 09:44:15 2009 - - 1 Answers - 0 Comments
A. c. A change in payroll taxes
Answered by Bored Goblin - Thu Jun 25 11:09:50 2009
Q. a. A change in profit taxes b. A change in property taxes c. A change in payroll taxes d. All
Asked by Lydia - Thu Jun 25 09:44:15 2009 - - 1 Answers - 0 Comments
A. c. A change in payroll taxes
Answered by Bored Goblin - Thu Jun 25 11:09:50 2009
Figure 13.1 shows a monopolist's demand curve. If marginal cost were $1, this monopolist could maximize its pr
Q. Figure 13.1 shows a monopolist's demand curve. If marginal cost were $1, this monopolist could maximize its profits by producing ___ units of output and by charging a price of ___.
Asked by rimount - Sat Apr 8 21:34:53 2006 - - 1 Answers - 0 Comments
A. 1. I don't see Figure 13.1. 2. You should do your own homework!
Answered by Crojack - Sat Apr 8 21:58:34 2006
Q. Figure 13.1 shows a monopolist's demand curve. If marginal cost were $1, this monopolist could maximize its profits by producing ___ units of output and by charging a price of ___.
Asked by rimount - Sat Apr 8 21:34:53 2006 - - 1 Answers - 0 Comments
A. 1. I don't see Figure 13.1. 2. You should do your own homework!
Answered by Crojack - Sat Apr 8 21:58:34 2006
Deriving Expressions from the Total Cost Curve?
Q. When we are given an expression for the Short Run Total Cost Curve (for eg: 8 + 3Q - 1.5Q^2 + 0.25Q^3), how do you derive expressions for the following: 1. Average Fixed Costs 2. Average Viarable Costs Curve 3. Marginal Costs Curve 4. Short Run Supply Curve I also have a second question: In perfect competition, if you are given the firm's total cost curve (for eg: 450 + 15Q + 2Q^2), and you are also given the Price, how do you find out the firm's profit maximising level of output and it's profit/loss level? An answer to either of these questions or preferably both would be great. Thank you. Dan.
Asked by DanCorb - Wed Apr 18 10:41:04 2007 - - 1 Answers - 0 Comments
A. 1. Fixed costs do not vary with Q. What part of the equation does not vary with Q? The answer is simply 8. 2. AVC is simply TVC/Q, so divide the variable parts of the equation (exclude "8") by Q, yielding (3Q-1.5Q^2+0.25Q^3)/Q 3. MC is the slope of the cost curve, right? For one unit change in Q, how much do costs change? The first derivitave of the cost equation will give you an equation that expresses slope. I'm rusty on this, so someone speak up if I'm wrong, but I believe that would be MC = 3 - 3Q + 0.75Q^2. 4. The short run supply curve IS the short-run MC curve. 2nd question These are cool questions. I hope that you really think the answers through and grasp why the answers are the answers. If you really get it, you've got a good… [cont.]
Answered by Bjorkmeister - Wed Apr 18 12:06:35 2007
Q. When we are given an expression for the Short Run Total Cost Curve (for eg: 8 + 3Q - 1.5Q^2 + 0.25Q^3), how do you derive expressions for the following: 1. Average Fixed Costs 2. Average Viarable Costs Curve 3. Marginal Costs Curve 4. Short Run Supply Curve I also have a second question: In perfect competition, if you are given the firm's total cost curve (for eg: 450 + 15Q + 2Q^2), and you are also given the Price, how do you find out the firm's profit maximising level of output and it's profit/loss level? An answer to either of these questions or preferably both would be great. Thank you. Dan.
Asked by DanCorb - Wed Apr 18 10:41:04 2007 - - 1 Answers - 0 Comments
A. 1. Fixed costs do not vary with Q. What part of the equation does not vary with Q? The answer is simply 8. 2. AVC is simply TVC/Q, so divide the variable parts of the equation (exclude "8") by Q, yielding (3Q-1.5Q^2+0.25Q^3)/Q 3. MC is the slope of the cost curve, right? For one unit change in Q, how much do costs change? The first derivitave of the cost equation will give you an equation that expresses slope. I'm rusty on this, so someone speak up if I'm wrong, but I believe that would be MC = 3 - 3Q + 0.75Q^2. 4. The short run supply curve IS the short-run MC curve. 2nd question These are cool questions. I hope that you really think the answers through and grasp why the answers are the answers. If you really get it, you've got a good… [cont.]
Answered by Bjorkmeister - Wed Apr 18 12:06:35 2007
Assume that a monopolist faces a negatively sloped demand curve with equation Q=100-P. Marginal cost = MC=4+2Q?
Q. a) What is the equation for the monopolist's marginal revenue curve if the monopolist must charge each customer the same price? b) what is the equation for the monopolist's marginal revenue curve if the monopolist is a perfectly discriminating monopolist?
Asked by stephen - Tue Dec 1 15:13:37 2009 - - 1 Answers - 0 Comments
A. yes
Answered by Zorque - Tue Dec 1 15:20:50 2009
Q. a) What is the equation for the monopolist's marginal revenue curve if the monopolist must charge each customer the same price? b) what is the equation for the monopolist's marginal revenue curve if the monopolist is a perfectly discriminating monopolist?
Asked by stephen - Tue Dec 1 15:13:37 2009 - - 1 Answers - 0 Comments
A. yes
Answered by Zorque - Tue Dec 1 15:20:50 2009
From Yahoo Answer Search: 'marginal cost curve'
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ue, 10 Nov 2009 01:08:01 GM
When fixed costs are decreased, how does the . marginal cost curve. change? In this lesson you will see why a change in fixed costs does not change the . marginal cost. . Posted by Mike Fladlien at 5:08 PM ...
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