Question

Since the monopolist's demand curve slopes downward, the marginal revenue is less than the price. Explain why this statement is true.

**not too sure but is it because the marginal revenue is always below the demand and what people are willing to pay? @jim_thompson5910 ? :)

Answer 1

not sure if this is related to what we did earlier? @jim_thompson5910 :/

Answer 2

how does a monopolist sell more product?

Answer 3

by decreasing the price? :/

Answer 4

yes

Answer 5

so that means they earn less per product ----> MR decreases

Answer 6

if you want to increase quantity demanded, then the monopolist has to reduce price which lowers MR

Answer 7

ohh so in explaining why it's true, say something like this?

To sell more product monopolists need to lower the price which means they can less and then the mr decreases?

Answer 8

yes

Answer 9

is that okay?

and ohh alrighy:)

Answer 10

okie yay!! thanks!! can i post another one on here? it's another explaining one :/

Answer 11

ok just one more though

Answer 12

okie:)

Explain the relationship between the average revenue curve and the demand curve for a monopolist.

not quite sure, does this correlate to what we said earlier? if demand is higher, revenue is higher and if demand is lower, revenue curve will be lower?

Answer 13

the answer can be found here

http://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=average%20revenue%20curve

Answer 14

okay, thank you bunches!! :D

Answer 15

you're welcome