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

10260 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Explain the market failures associated with increasing transport use.


Record numbers of visitors to the Olympic Games want accomodation in the host city. Explain the effects that this will have on the market for rental properties.


How would you structure a 25 mark essay question? For example if the question was " how will an increase in interest rates affect the rental market?"


Can you explain income elasticity of demand?


We're here to help

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

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences