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

AREC 1, Equation (1) gives a hypothetical demand curve for hybrid vehicles ...

Equation (1) gives a hypothetical demand curve for hybrid vehicles in the United States during the year 2000, where Q is the quantity demanded and P is the price. Equation (2) giv

Inflation, Inflation is not possible under the gold standard.” Is this stat...

Inflation is not possible under the gold standard.” Is this statement true, false, or uncertain? Explain your answer.

Demands for the two market are P1=15-, demand for two market are P1=15-Q1&P...

demand for two market are P1=15-Q1&P2=25-Q2.the monopoly TC is C=5+3(Q1+Q2).What are ,output,profit&MR if the monopolist can price disc? riminate

Dialectic inquiry, Dialectic Inquir y It is a technique for gr...

Dialectic Inquir y It is a technique for group decision making in which members are forced to "debate" both sides of a matter. Dialectic inquiry forces consideration o

Exchange rate policy, Exchange Rate Policy: LERMS, a dual exchange ra...

Exchange Rate Policy: LERMS, a dual exchange rate system, was introduced in the Budget for 1992-93. Under this system, 40 per cent of foreign exchange earnings were to be sur

EM13720147ion, Ask questMicroeconomics Reference No.:- #Minimum 100 words ...

Ask questMicroeconomics Reference No.:- #Minimum 100 words accepted#

Current account deficit, Current Account Deficit (CAD): Boon or Bane ...

Current Account Deficit (CAD): Boon or Bane The general belief is that high CADs are dangerous. In general, this is correct. But the converse that low CADs are good is not. A

Tort liability, Construct a table indicating the social expected loss corre...

Construct a table indicating the social expected loss corresponding to each combination of precaution choices by the two individuals. (ii) What is the socially efficient combinatio

Demand and supluy curves, using demand and supply curves explain how shorta...

using demand and supply curves explain how shortage and surplus are created

General, A tax imposed on a market with an inelastic demand and an elastic ...

A tax imposed on a market with an inelastic demand and an elastic supply will cause

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