Determination of market structure
Not what you're looking for?
Use the following demand schedule to determine total revenue and marginal revenue for each possible level of sales:
Product Price Quality Demanded Total Revenue Marginal Revenue
$2 0 $-----------
2 1 ------------ ----------------
2 2 ----------- ------------------
2 3 ----------- ----------------
2 4 ----------- -----------------
2 5 ------------ -----------------
.a. What you could conclude about this structure of the industry in which this firm is operating?
Explain.
b. Graph the demand, total-revenue, and marginal revenue curves for this firm.
c. Why do the demand and marginal-revenue curves coincide?
d. "Marginal revenue is the change in total revenue associated with additional units of output"
Explain verbally and graphically, using the data in the table.
Purchase this Solution
Solution Summary
Determination of market structure based on total and marginal revenues.
Solution Preview
Total revenue, top to bottom: 0; $2; $4; $6; $8; $10. Marginal revenue, top to bottom: $2, throughout.
(a) The industry is purely competitive--this firm is a ...
Purchase this Solution
Free BrainMass Quizzes
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.