# Marginal revenue for a firm in

Marginal revenue for a firm in a competitive market is constant,but this is not the case for a monopolist. So, the marginal revenueof a monopolist might change for different quantities ofproduction. Please explain why.

The marginal revenue is the addition made to the total revenuewhen an additional unit of the product is sold. It is calculated bydividing the change in total revenue with the change in quantitysold.

In a perfectly competitive market, the firm is price taker meansthey cannot influence the market price by changing their price andoutput decisions. This means the competitive firms can sell anyoutput at the market price, since the market price is constant themarginal revenue and the average revenue also the same.

For eg: The firm in a perfectly competitive market sell at \$5 ,so the first unit gives a a total revenue of , and the second unit produce a total revenue of , and the third unit and so on , it is to be noted that the marginal revenue remainsthe same(Change in total revenue ) , this is because the price hasnot changed at all. In the perfect competition there is no priceeffect that is why the marginal revenue is constant.

But in a monopoly the situation is different , the monopoly is amarket structure characterized by single seller, so he has got theabsolute market power. The monopolist can charge any pricehe wants, but to increase the quantity sold the monopolist shoulddecrease the price and this will cause the marginalrevenue decrease compared to the previous unit sold. There is aprice effect in the monopoly that is why the marginal revenue islower than the price.

##### "Our Prices Start at \$11.99. As Our First Client, Use Coupon Code GET15 to claim 15% Discount This Month!!"
Calculate the price
Pages (550 words)
\$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with brilliantassignmenthelp.com
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat