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Eco homework question

Give a numerical example to show that a monopolist’s marginal revenue can be upward-sloping over part of its range. Hint: The price on the demand curve is the producer’s average revenue. Think of the graphic in Chapter 4 that showed the possibility of declining average costs while marginal costs were increasing.

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Submitted by Kumail Raza on Sun, 2012-04-22 14:40
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Answer file is attached. Feel free to contact on any query

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Upward xxxxxxx xxxxxxxx xxxxxxx xxxxx

In order xx get xx upward sloping marginal xxxxxxx curve, xx xx xxxxxxxxx xxx xxx xxxxxx xxxxx xx be upward sloping.  This xx because the xxxxxxxx xxxxxxx curve always xxx twice xxx xxxxx xx xxx demand xxxxxx  Another way xx xxxxx about xxxxx xx that the xxxxxx xxxxx always xxxxxxxx or chases xxx xx xxxxxx so xx xxx MR is upward xxxxxxxx the demand curve xxxx xxxx to be as well.  First let's go xxxxxxx x numerical example, xxxxxxx xx xxxxxx xxxxxxx xxxxxx xxxxxx xxx xxx to calculate the xxxxxxxxxx xx xxxxxxxx

xxxxxxxxxxxxxx

xxxxx

xxxxxxxx

xxxxx Revenue

xxxxxxxx Revenue

1

x

x

2

x

4

3

x

3

9

x

x

4

16

7

5

x

25

x

x

x

xx

xx

7

x

49

13

xxx can see xxxx this xxxxx xxxx the resulting xxxxxx xxxxx will xx xxxxxx xxxxxxxx similar xx a xxxxxx curve.  Remember xxxx xxxx xxxx xxxx xxxxx xx the xxxx xx question xx x xxxxxx xxxxx The information xxxx the table above, is xxxx xx make the graph, xxxxx below:

Note xxxx xxxxx xx x

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Answer
Submitted by ANANDH on Sun, 2012-04-22 19:58
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Monopoly MR upward sloping _ All requirements covered (100% Satisfaction Guaranteed)

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5. Give x numerical xxxxxxx xx xxxx xxxx a monopolist’x marginal xxxxxxx can xx xxxxxxxxxxxxxx over xxxx xx its xxxxxx Hint: The xxxxx xx xxx demand xxxxxx is xxx xxxxxxxx’x xxxxxxx revenue. xxxxx of xxx graphic in Chapter x xxxx showed the xxxxxxxxxxx xx declining average xxxxx while marginal xxxxx were xxxxxxxxxxx

The monopolist marginal revenue can xx upward xxxxxxx when xxx demand for the product xx xxxxxxx upward. Giffen goods xxx xxxx goods xxxxx xxxxxx xxxxxx are upward xxxxxxx xx the xxxxxxxx revenue xxx xxxxxx xxxxx xxxx xx xxxxxxx xxxxxxx

Example,

xxxxx x 100 + 10Q

xx x xxxx + 10Q2

MR = 100 + 100Q


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