describe the relationship of the demand curve , Microeconomics

Assignment Help:

The definition of a price maker is a "firm with some power to set the price because the demand curve for its output slopes downward", which in effect, means those firms with a downward sloping demand curve have some market power.  

  1. How does a firm then maximize their total revenue?  Describe the relationship of the demand curve and total revenue curve, indicating which of the four types of market structures market power like this would occur (i.e., perfect competition, monopolistic competition, oligopoly, monopoly).
  2. What happens when a firm raises its price in a market in which the price is in the inelastic range of the demand curve?
  3. What happens when a firm raises its price in a market in which the price is in the elastic range of the demand curve? 

 

 


Related Discussions:- describe the relationship of the demand curve

Supply, Clearly explain the distinction between supply, demand and equilibr...

Clearly explain the distinction between supply, demand and equilibrium price.

Market competition., explain why policies for promoting market competition ...

explain why policies for promoting market competition are desireable

Health Reform, Healthcare Reform is currently in the news almost every day....

Healthcare Reform is currently in the news almost every day. The current approach proposes a government sponsored health insurance “market” to help control costs and make healthcar

Basic calculus technique, Suppose that the total revenue function of a firm...

Suppose that the total revenue function of a firm is given by TR(q) = 120q - 2q^2, where q is the level of output. Find the level of output q that will maximize the firm’s total re

Fiscal policy, 3. Which of the following would not be an expansionary fisca...

3. Which of the following would not be an expansionary fiscal policy? a.Increased welfare payments to the poor b.Decreases in federal taxes on corporations c.A balanced budget d.I

How it can be possible for increases in the minimum wage, The minimum wage ...

The minimum wage was increased in 1996 amid cries by various economists that it would cause unemployment. Critics shown that the last time the minimum wage went up the si

Investment in flood control infrastructure - present value, 1. An investmen...

1. An investment in flood control infrastructure  today will generate $1,000,000 in benefits 10 years from today. Using a 3% discount rate what is the present value of these benefi

Future directions - economic policies, FUTURE DIRECTIONS: It is often ...

FUTURE DIRECTIONS: It is often said that the difficult things are the beautiful things, and if they are as vital for healthy national development as an economy, society and po

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd