Answer to Question #241331 in Microeconomics for Riffle

Question

From the figures given below;

OUTPUT(UNITS) TOTAL REVENUE

50 750

60 840

70 910

80 960

90 990

100 1000

You are required to:

a) Calculate the average revenue [3 marks]

b) Calculate the marginal revenue [2 marks]

c) Draw the average revenue curve [2 marks]

d) Determine the market structure [1 mark]

e) Mention two features of the market structure in (d) [2 marks]

Answer 1

(d)

The market structure is monopoly. This is because the marginal revenue curve in this case is downward sloping.

(e)

Features:

• There exists barriers of entry into the market.
• Single seller in the market.
• Price discrimination.