Question

For any level of output, where does the marginal revenue curve lie in relation to the demand curve?

**not quite sure :(

Answer 1

again not 100% sure, but go back to this drawing

http://courses.aplia.com/problemsetassets/micro/Lemke_Monopoly_II/computers.gif

Answer 2

and you can see the relationship between the two curves

Answer 3

so like the mr curve starts off at the same point as the demand, but it lies below the demand curve?

Answer 4

yeah it appears MR is always below demand

makes sense because you can't get more revenue than what people are willing to pay

Answer 5

ahh okie :) yay!! thanks!! :D

Answer 6

@jim_thompson5910 what about this?

Where would you draw the industry demand curve on your graph? Why?

Answer 7

the industry demand curve is the sum of all the individual demand curves

Answer 8

you sum along the horizontal axis

Answer 9

okay:) so i would draw it above all the other demand curves because it's the sum?

wait sum along the horizontal axis? what does that mean?

Answer 10

it means that you will have some demand curve that is shifted to the right of the individual firm's demand curve

Answer 11

okay, so in explaining can i say this?

i would draw the industry demand curve shifted more towards the left of the other demand curves because it is the sum of all the other demand curves?

would that be correct?

Answer 12

right, not left

Answer 13

you go right because you're summing up individual demands

Answer 14

oh okay oops!! :) noted :)

Answer 15

ahh okay:) so what is written above (fixing it to right not left) would be an appropriate answer? :O

Answer 16

yes

Answer 17

eek! kk thank you:D