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

12131 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

How can the central bank affect economic activity using monetary policy


The UK suffers from a persistent balance of trade deficit. what can the government do to rectify this and balance the trade figures?


What are the different types of price discrimination?


How do you know whether the demand for a good is price elastic or price inelastic?


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