What is the relationship between marginal revenue and price

Reference no: EM131443163

Question: The Mobile Phone Company has served Mobile, Alabama, since the 1930s as a government-authorized natural monopoly. The following table describes a portion of the demand curve for long-distance service facing Mobile Phone Company.

a. Complete the table.

625_Mobile phone.png

b. How does the company's marginal revenue change as the price changes? What is the relationship between marginal revenue and price?

c. At what price does demand become inelastic?

d. What will happen to the elasticity of demand when a new company, Mobile Phones of Mobile, starts a competing wireless phone company?

Reference no: EM131443163

Questions Cloud

Indicate which type of barrier created the monopoly : Barriers to entry are important in the creation of monopolies because they keep competitors out of the industry. Although many types of barriers exist, historically, ownership of an essential resource, government patents and licenses, and large en..

Examine the exclusions and inequities of sport : Discuss how any TWO of the below authors have discussed sports and/ or sporting community in terms of racial spatiality and/ or geographies of exclusion.

How these tricks and others can help expand your memory : Explain how these tricks and others can help expand your memory. Also discuss the storage differences between short and long term memory. Will a waiter remember an order after he has already filled it if you ask him/her? Is s/he more likely to reme..

What is the name of the program you are assessing : In your position as a parole officer, you feel as if you are making a difference in a person's life. You knew that you would never be a police officer and here, you feel that you have more power than a police officer and you have a great criminal ..

What is the relationship between marginal revenue and price : The Mobile Phone Company has served Mobile, Alabama, since the 1930s as a government-authorized natural monopoly. The following table describes a portion of the demand curve for long-distance service facing Mobile Phone Company.

Describe the positive aspect of the collaborative initiative : Describe the positive aspects of the collaborative initiative.What partner do you feel is less essential to the initiative and why? (Note "None" is not an option.) What criminal justice entity do you feel could have enhanced the success of the initia..

Difference between a corporation and a conglomerate : The purpose of this discussion is to help you understand the role of corporations in the modern world while evaluating ethical aspects of corporate market domination. Describe the difference between a corporation and a conglomerate

Influencing factors in consumer buying decisions : What are the influencing factors in consumer buying decisions? How do marketers strategize their MRP on the products?

Compute the plantwideoverhead cost rate : ACFI 2003- Compute the plantwideoverhead cost rate, using direct labour hours as the cost driver (or activity base). Calculate the amount of overhead allocated to each unit of models A and B.

User Account

All Pages