User Account

All Pages

Marginal revenue a seller receives

Assignment Help Macroeconomics
Reference no: EM131274054

In the chapter, we noted that the marginal revenue a seller receives can be expressed as

MR = P + (ΔP/ΔQ) Å~ Q.

a. Using this formula as a starting point, show that marginal revenue can be expressed as MR = P(1 + 1/ E D ), where E D is the price elasticity of demand.

b. Using your knowledge about the price elasticity of demand, explain why the marginal revenue a firm with market power receives must always be less than the price.

c. Using your knowledge of the price elasticity of demand, explain why the marginal revenue a perfectly competitive firm receives  must be equal to the price.

Reference no: EM131274054

Questions Cloud

How standards of practice for the profession are developed : Outline the process for developing nursing standards of practice, and identify the different entities that might be involved in developing a standard of practice.
Compare and contrast the b2c versus b2b buying behavior : Compare and contrast the B2C versus B2B Buying Behavior for a current product on the market today. Use the same product for both the B2C and B2B situation.
What are advantages of confirming accuracy of status reports : What are the advantages and disadvantages of confirming the accuracy of status reports filed by your team members? What did you have to do to bring each successive budget closer to the final working budget?
How lillian wald approach to individual and community health : 1) Identify historical, political, economic and ethical factors that influenced development of public health nursing.  Discuss how Lillian Wald's approach to individual and community health care provides an understanding of how to facilitate the em..
Marginal revenue a seller receives : In the chapter, we noted that the marginal revenue a seller receives can be expressed as
What is marketing channel strategy : Marketing channel strategy. Why type of distribution intensity strategy does your product or service currently use? How do you know this?
What is dikw and how do you use it in your practice : How does the concept of wisdom in nursing informatics compare to the concept of professional nursing judgment? What is DIKW and how do you "use" it in your practice?
Compare internalization theory and knickerbocker theory : Compare and contrast internalization theory and the Knickerbocker theory of FDI. Which theory offers the best explanation of FDI and why? Explain your answer with a well-constructed and cogent response.
What legal or regulatory constraints have contributed : What was the organizational structure under which the actions took place? What legal or regulatory constraints have contributed to the behavior witnessed or have been violated in the course of the behavior?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Current state of uk government spending and revenue plans

Write a report outlining the current state of the UK government's spending and revenue plans.

  Explanation about inflation and policies

Mention and explain the two types of inflation. Which sort of inflation would most likely be associated with the negative GDP?

  Types of assistance

This is classified as an unintended consequence of these types of assistance. How does this affect the incentive to work as opposed to not work? Do you consider this to be fair?

  Suppose in the republic of madison that the regulation of

suppose in the republic of madison that the regulation of banking rested with the madison congress including the

  Strategic analysis assignment

For your strategic analysis assignment, you should choose an organization that you are familiar with. You will develop a strategic analysis for this organization in order to determine whether or not adopting a new sustainability initiative is poss..

  Explain why might the unemployment rate tend to actually

Explain why might the unemployment rate tend to actually underestimate the unemployment problem, especially during a recession.

  Computing the average costs

Do constant marginal costs mean that the marginal costs are equal to the average costs?

  Discuss a hypothetical economy where both the price

Suppose the following equations discuss a hypothetical economy where both the price level and interest rates are fixed.

  Explain what happens to price and quantity of milk

Explain what happens to price and quantity of milk when the following events occur (you do not need to analyze the event itself but rather determine the effect of the event on supply and demand of milk):A scientific study shows that consumption of mi..

  What is hurtful move on the kenyan governments part

In an attempt to reduce poaching of elephant ivory tusks, officials in Kenya burned illegally gathered ivory. Using your understang of shifts in supply and demand, will this turn out to be a helpful or hurtful move on the Kenyan government's part

  Find the terminal velocity and the relaxation time

Find the terminal velocity and the relaxation time Tr (the characteristic time required to reach approximately the terminal velocity) for both cases of light and heavy particle.

  Problem regarding the macrs depreciation

How much salvage is allowed when using MACRS depreciation? All of the salvage value is allowed

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd