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

11937 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

What is GDP and is it a useful indicator to measure the standard of living?


What is price discrimination?


A new technology revolutionises (e.g. the internet). How will the following changes affect the national economy?


Explain the term 'equilibrium' and demonstrate how a new equilibrium position is established when there is a decrease in demand for a good or service.


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:

© 2025 by IXL Learning