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Home Various Revenue Concepts Revenue Curves of an Individual Firm Under Imperfect Competition


Revenue Curve of an Individual Firm Under Imperfect Competition:


Under imperfect competition, whether it may take the form of monopoly, duopoly or oligopoly, the demand curve facing the firm is negatively inclined or we can say its slopes downward from left to right. This means that a firm can affect the market price and can sell more goods at lower prices and less at a higher price.


Under imperfect competition, the behavior of MR curve is that it lies below the AR curve. As production expands, the distance between the two curves increases. The AR line and the price line is the same as is clear from the schedule given below:




Units Sold Price ($) Total Revenue ($) Marginal Revenue ($) Average Revenue ($)
1 15 15 15 15
2 14 28 13 14
3 12 36 8 12
4 9 36 0 9
5 7 35 -1 7
6 5 30 -5 5





lt is clear from the above figure (14.4) that average revenue curve and marginal revenue curve both have a negative slope. MR curve lies below the AR curve because the output is solid at the falling prices.

Relevant Articles:

Types/Kinds of Revenues
Revenue Curves of an Individual Firm Under Perfect Competition

Revenue Curves of an Individual Firm Under Imperfect Competition


Principles and Theories of Micro Economics
Definition and Explanation of Economics
Theory of Consumer Behavior
Indifference Curve Analysis of Consumer's Equilibrium
Theory of Demand
Theory of Supply
Elasticity of Demand
Elasticity of Supply
Equilibrium of Demand and Supply
Economic Resources
Scale of Production
Laws of Returns
Production Function
Cost Analysis
Various Revenue Concepts
Price and output Determination Under Perfect Competition
Price and Output Determination Under Monopoly
Price and Output Determination Under Monopolistic/Imperfect Competition
Theory of Factor Pricing OR Theory of Distribution
Principles and Theories of Macro Economics
National Income and Its Measurement
Principles of Public Finance
Public Revenue and Taxation
National Debt and Income Determination
Fiscal Policy
Determinants of the Level of National Income and Employment
Determination of National Income
Theories of Employment
Theory of International Trade
Balance of Payments
Commercial Policy
Development and Planning Economics
Introduction to Development Economics
Features of Developing Countries
Economic Development and Economic Growth
Theories of Under Development
Theories of Economic Growth
Agriculture and Economic Development
Monetary Economics and Public Finance

History of Money

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