Why is the marginal return curve twice as steep as the average revenue curve in microeconomics firm theory?

The average revenue is the demand curve, revenue is calculated by q*p, so (a+q)q = aq-q^2, the marginal revenue is the rate of change in the revenue so if we differentiate wrt q, we get a-2q, which illustrates by the gradient, it is twice as steep.

JN
Answered by Jaspreet N. Economics tutor

12045 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

How can I show the impact of a NMW on employment using a supply and demand graph?


Explain the Kinked Demand Curve


Calculate the coupon rate for a 5 year £500 bond that has a coupon value of £10


What is diminishing marginal utility?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2026 by IXL Learning