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

The Money Multiplier is explained below: If you see carefully, the money multiplier is nothing but an inverse of a reserve ratio. Therefore, we can write MM = 1/rr, where rr is

explain the difference between traditional theory and modern theory of cost

The average price level has increased at a relatively rapid rate since 2008 even though the deep recession that UK experienced in 2008/09. The growth in the price level has been dr



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

ExplainBainlimitpricetheory

AskPharmaceutical companies can expect to earn large profits from blockbuster drugs (for high blood pressure, depression, ulcers, allergies, sexual dysfunction) while under patent

Accounting profit equals revenue minus all explicit costs, and economic. One profit is defined it should not be difficult to measure the profit of a firm for a given period. But tw