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

11889 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Why is the marginal cost curve shaped the way it is?


Define what is meant by GDP, and explain the limitations of using it as a proxy for economic growth.


What is inflation and how can we measure it?


To what extent do the main macroeconomic objectives conflict?


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