Asked by: Seynabou Strasslasked in category: General Last Updated: 30th March, 2020
What is the shape of total revenue curve in Monopoly?
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Similarly one may ask, what is the shape of average revenue and marginal revenue curves under monopoly?
Unlike under perfect competition, a firm under imperfect competition such as under monopoly can sell more only by lowering its price. Therefore, the average revenue curve is downward sloping and its corresponding marginal revenue curve lies below it.
Also Know, why is the average revenue curve horizontal? The average revenue curve is a horizontal straight line parallel to the X-axis and the marginal revenue curve coincides with it. This is because under pure (or perfect) competition the number of firms selling an identical product is very large.
Subsequently, question is, what is a revenue curve?
A curve that graphically represents the relation between the total revenue received by a firm for selling its output and the quantity of output sold. A total revenue curve is the relation between the total revenue a firm receives from production and the quantity of output produced.
What are the types of revenue in economics?
Revenue Types : Total, Average and Marginal Revenue. ADVERTISEMENTS: Revenue Types : Total, Average and Marginal Revenue! The term revenue refers to the income obtained by a firm through the sale of goods at different prices.