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How does the usual shape of the total revenue curve for a monopolist differ from the...

How does the usual shape of the total revenue curve for a monopolist differ from the shape of the marginal revenue curve for a perfect competitor? Briefly explain the difference in the two shapes

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Answer #1

The marginal revenue of the monopolist is downward sloping and the marginal revenue of the firm under perfect market condition is a horizontal line. this difference between the two market exists because the firms under the perfect market condition have no control over the price and they can sell as much as they want at the given price, that makes them earn the same revneue from every goods sold.

Monopolist on the other hand will earn a higher revenue if the price of the goods is decreased. that is why the MR curve of the monopolist is downward sloping.

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