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

12201 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

How would you go about calculating inflation using CPI (consumer price index)


Explain fiscal policy and how it can be used


With the help of a diagram, explain how collusion between energy suppliers could affect the retail prices paid by consumers. (9)


How does a reduction in the interest rate affect aggregate demand in a closed economy?


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