Why is the marginal return curve twice as steep as the average revenue curve in microeconomics firm theory?

The average revenue is the demand curve, revenue is calculated by q*p, so (a+q)q = aq-q^2, the marginal revenue is the rate of change in the revenue so if we differentiate wrt q, we get a-2q, which illustrates by the gradient, it is twice as steep.

JN
Answered by Jaspreet N. Economics tutor

12198 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

What would happen to the price and quantity of a good if the government imposed a subsidy?


Define the term public good and give me two examples of public goods.


Explain why the use of petrol and diesel cars may be a source of market failure.


'What are the disadvantages of economic growth?'


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2026 by IXL Learning