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my lecturer once said something like the maths part are not always proved true, but just assumed to be so. is MR the same? i could never plot out a graph with my own hypothetical data that says MR is twice as steep as DD, unless i manipulate my data to suit it. that said, is the teaching of MR twice as steep as DD, a maths thing, or an assumed thing?

2007-12-25 02:22:00 · 3 answers · asked by Anonymous in Social Science Economics

3 answers

Only when the demand curve is linear is the slope of the marginal revenue curve twice as steep. It is taught for simplicity.

2007-12-25 18:41:38 · answer #1 · answered by Hubris252 7 · 0 0

This is only true if the price is linearly dependent on q and the cost per unit is constant.
In this case the revenue depends on the slope of DD*q^2 + other terms that are linear in q, so the MR = 2 slope of DD*q +constant terms.
(From calculus the derivative of x^2= 2 x and of x=1)

2007-12-25 15:32:47 · answer #2 · answered by meg 7 · 1 0

The slopes of the demand and marginal revenue curves are calculus results.

2007-12-25 11:53:49 · answer #3 · answered by Jon R 3 · 0 0

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