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Unformatted text preview: As a result of this the demand curve of a monopolist is downward sloping. This has been shown in Figure 40. DD in the figure is the Demand or Average Revenue curve of a monopolist. When the Average Revenue curve falls, the corresponding Marginal Revenue curve also falls and is below the AR curve. The usual law about the behavior of average and marginal quantities governs such a relation between AR and MR....
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- Fall '10
- Supply And Demand, Average Revenue Curve, downward sloping curve