Why is the marginal revenue curve for a business with market power below the firms demand curve

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Why is the marginal revenue curve for a business with market power below the firm’s demand curve at any given level of output (beyond the first unit). Is this also true for a firm in a perfectly competitive market?

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Introduction To Chemical Principles

ISBN: 9780321814630

11th Edition

Authors: H. Stephen Stoker

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Question Posted: Nov 24, 2023 05:16 AM

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Why is the marginal revenue curve for a business with market power below the firms demand curve

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The marginal revenue MR curve for a business with market power such as a monopolistic or oligopolistic firm is below its demand curve at any given lev...View the full answer

Introduction To Chemical Principles

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