As the qty produced by a monopolist increases, the gap between the marginal-revenue curve and demand curve...?

Question

increases or decreases? Which is it?

Answer 1

decreases

Answer 2

Actually, it increases. In a monopoly, Demand=Average Revenue and the Marginal Revenue (MR) curve moves downward at a slope twice that of the Demand curve. Since they start typically from almost the same intercept, the MR curve creates a larger gap as the quantity produced increases. That means that the MR earned decreases twice as fast as the demand, but the gap itself becomes "larger", which is what you were asking.

Answer 3

The monopolist ought to offer the place MR=MC, so production would be a million million gadgets. it is going to charge $30, on account that customers are prepared to pay this for a million million gadgets of grant. primary entire fee is $35, so the organization will lose $5 consistent with unit of production, or entire losses are $5 million.