How does a firm maximize their total revenue, Microeconomics

The definition of a price maker is states as “firm with some power to set the price bcoz the demand curve for its output slopes downward”, that in effect, mean those firms with a downward sloping demand curve having some market power.
1. How does a firm 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?
Posted Date: 4/7/2012 11:44:35 AM | Location : United States







Related Discussions:- How does a firm maximize their total revenue, Assignment Help, Ask Question on How does a firm maximize their total revenue, Get Answer, Expert's Help, How does a firm maximize their total revenue Discussions

Write discussion on How does a firm maximize their total revenue
Your posts are moderated
Related Questions
discuss the implications of various market structures(competitive and non-competitive) for price determination

#question influence of an increase in migrant on market supply labour

Marginal Product (MP) of a Factor: From the above mentioned production function, immediately we can study the effect on total output when there is a variation in labour utlili

Shor tage A condition under that the quantity demanded for a good or service exceeds the available supply for that good or service. Shortages usually cause a rise in price

Illustrate the Economic Growth Up until 1800 growth rates of human populations were glacial. Population growth between 5000 B.C. and 1800 averaged less than one-tenth of a perc

Q. Explain Labour Intensity? Labour Intensity: Ratio of labour effort expended, compared to total on-the-job compensated labour time. A higher ratio of labour intensity reflect

If the short run method to produce Q quantity is with full time workers L=0.025*Q, COST OF WORKER IN THE SHORT RUN IS w=20226.154, how do you derive the value of Q

Taxes: Compulsory government levies collected to pay for public spending. There are numerous types of taxes (corporate, income, wealth, sales, environmentaland payroll taxes); each


Foreign Direct Investment: It is an investment by a company (based in one country) in an actual operating business, including real physical capital assets (such asmachinery, buildi