Answer in Microeconomics for John #174929
March 27th, 2023
Explain the shape of the marginal revenue curve in each of the following
cases:
Perfect competition
Monopoly
The correct answer is;In a perfect competition market, the marginal revenue curve is horizontal and equal to demand, or price and production occurs where marginal cost and marginal revenue intersect while in a monopoly market, the marginal revenue curve is distinct and downward-sloping and production occurs where marginal cost and marginal revenue intersect.