CBSE Class 12-commerce Answered
Explain the revenue curves under monopoly market with
diagram.
Asked by Topperlearning User | 26 Apr, 2016, 07:47: AM
Expert Answer
In a monopoly firm, the average revenue curve and the marginal revenue slope downwards from left to right. If a monopolist wants to sell more, he has to reduce the price of products. Being a single seller of the product, she/he is a price maker and she/he can fix any level of prices according to her/his preferences. On lower prices, she/he can sell more in the market. The quantity purchased by the consumers is a decreasing function of the price. Therefore, the firm’s demand curve or the average revenue curve slopes downward.
Answered by | 26 Apr, 2016, 09:47: AM
CBSE 12-commerce - Microeconomics
Asked by Topperlearning User | 26 Apr, 2016, 07:47: AM
ANSWERED BY EXPERTCBSE 12-commerce - Microeconomics
Asked by Topperlearning User | 26 Apr, 2016, 07:47: AM
ANSWERED BY EXPERTCBSE 12-commerce - Microeconomics
Asked by Topperlearning User | 26 Apr, 2016, 07:47: AM
ANSWERED BY EXPERTCBSE 12-commerce - Microeconomics
Asked by Topperlearning User | 26 Apr, 2016, 07:47: AM
ANSWERED BY EXPERTCBSE 12-commerce - Microeconomics
Asked by Topperlearning User | 26 Apr, 2016, 07:47: AM
ANSWERED BY EXPERTCBSE 12-commerce - Microeconomics
Asked by Topperlearning User | 26 Apr, 2016, 07:47: AM
ANSWERED BY EXPERTCBSE 12-commerce - Microeconomics
Asked by Topperlearning User | 26 Apr, 2016, 07:47: AM
ANSWERED BY EXPERTCBSE 12-commerce - Microeconomics
Asked by Topperlearning User | 26 Apr, 2016, 07:47: AM
ANSWERED BY EXPERTCBSE 12-commerce - Microeconomics
Asked by Topperlearning User | 26 Apr, 2016, 07:47: AM
ANSWERED BY EXPERTCBSE 12-commerce - Microeconomics
Asked by Topperlearning User | 26 Apr, 2016, 07:47: AM
ANSWERED BY EXPERT
