Illustrate demand and revenue curves for a monopolistic market

      

Illustrate demand and revenue curves for a monopolistic market

  

Answers


Wilfred
Unlike in perfect competition where a firm is a price taker, so that P = MR = AR , in the case of monopoly demand and marginal revenue will vary.
These will vary because the monopoly has the power to influence market price by deciding on the amount of output to offer in the market for sale. Monopolist demand curve will be down ward sloping.

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Wilfykil answered the question on March 7, 2019 at 10:57


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