Question

How the Total Revenue curve for a perfectly competitive firm is different from the Total Revenue...

How the Total Revenue curve for a perfectly competitive firm is different from the Total Revenue curve for a monopoly? Use the TR curve for a monopoly to explain why the quantity which maximizes TR must be less than the quantity which maximizes total profit.

Homework Answers

Answer #1

when TR is maximum MR = 0

Profits are minimum when TR-TC is maximum

So the quantity which maximizes TR must be less than the quantity which maximum profits

As once TR is maximise, MR in that output will be 0 .

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