Question: Why can a monopolist's marginal revenue be negative for some levels of output? Why is marginal revenue negative when market demand is price inelastic?

Why can a monopolist's marginal revenue be negative for some levels of output? Why is marginal revenue negative when market demand is price inelastic?

Step by Step Solution

★★★★★

3.40 Rating (181 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The firms marginal revenue could be negative if the increase in revenue the firm ge... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

846-B-E-D-S (2311).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

Why is a monopolists marginal revenue less than the price of its good? Can marginal revenue ever be negative? Explain.

Explain why the marginal revenue curve for a monopolist lies below its demand curve, rather than coinciding with the demand curve, as is the case for a perfectly competitive firm. Is it ever possible...

A monopolists inverse demand function is P = 100 Q. The company produces output at two facilities; the marginal cost of producing at facility 1 is MC1(Q1) = 4Q1, and the marginal cost of producing...

3. Why can a monopolists marginal revenue be negative for some levels of output? Why is marginal revenue negative when market demand is price inelastic?

A government wants to reduce electricity consumption by 10%. The price elasticity of demand for electricity is 0.1. The government must __________ the price of electricity by __________. A. raise; 1%...

help required,will give a good rating. QUESTION 3 Snow Security Services is a monopolist in the market for freeze-resistant wall-top security cameras. The rm has xed costs of 20 and a constant...

Solve. Part A. 1. During a period of contractionary monetary policy, a)the price level is increased, which leads to an increase in the money supply. b)the price level is decreased ,which leads to a...

Read the article and answer those questions, 1) Can we say that free-trade agreements or China's emergence as an exporter are the primary reasons that there is a decline in the labor force...

Using the case study "ABC Company"provided and the articles "Bias Has No Place at Work" Please answer the questions. Thanks! ABC Corporation is an electronic device company selling cellular phones...

QUESTION 3 Snow Security Services is a monopolist in the market for freeze-resistant wall-top security cameras. The firm has fixed costs of 20 and a constant marginal cost of 5 at all levels of...

You owe MasterCard $3,000. You and MasterCard orally agree that if you pay $2,000, MasterCard will forgive the rest of the debt. If you pay $2,000, can MasterCard recover the $1,000 balance? Please...

Select an organization: Mattel Inc. and create a product innovation charter in which you need to address the following: i. Corporate Strategy ii. Target Market iii. Goals and Objectives iv. Special...

3 Formula 2 5 points A stock will pay a dividend of $ 1 . 1 1 exactly one year from today. Thereafter, dividends will grow at a constant rate of 2 % per year. If the discount rate is 1 1 % , what is...

Late in the project cycle, it was discovered that some of the projects human resources should have trained in a specific methodology. Where should these training strategies have first been...

a. How could in-kind transfers, such as food stamps, not reduce measured poverty or inequality? b. How could food stamp benefit reductions as income rises cause the program to actually decrease...

If a negative income tax was Tax = (30 percent x income) $15,000: a. What would be the tax/refund for a family earning $100,000 a year? b. What would be the tax/refund for a family earning $50,000 a...

Data table A to E.15 Question Help Could it be that smoking actually increases survival rates among women? The accompanying data represent the 20-year survival status and smoking status of 1328 women...

Please Show work and steps on how you got the answer 5)Jack has 15-t shirts. He is considering taking at least 3 t-shirts with him on vacation. How many options does he have? 6)How many permutations...

Calculate the present value of a retirement fund if you put $ 1 , 7 5 0 in your savings account at the end of each of the next 3 5 years? Assume that your savings account pays 8 % compounded...