The figures given below represent the revenue curves of a monopolist. Figure 10.2
TR: Total revenue curve
AR: Average revenue curve
MR: Marginal revenue curve
-Refer to Figure 10.2.If the output at E is 600 units,then the output at B is _____ units.(We know that the slope of the marginal revenue curve is twice the slope of the average revenue curve.)
A)900 units.
B)200 units.
C)300 units.
D)1200 units.
E)800 units.

Question

The figures given below represent the revenue curves of a monopolist. Figure 10.2  
TR: Total revenue curve
AR: Average revenue curve
MR: Marginal revenue curve
-Refer to Figure 10.2.If the output at E is 600 units,then the output at B is _____ units.(We know that the slope of the marginal revenue curve is twice the slope of the average revenue curve.)
A)900 units. 
B)200 units. 
C)300 units. 
D)1200 units. 
E)800 units.

Quizplus · Accepted Answer

From the graph, we can see that the intersection point of MR and AR curves is at point C. At this point, the slope of the MR curve is twice the slope of the AR curve, as given in the question. Therefore, the output at point B, which lies halfway between points C and E, is 300 units.

The Figures Given Below Represent the Revenue Curves of a Monopolist