Comment on the shape of the MR curve in case the TR curve is a (i) positively sloped straight line, (ii) horiz

Exercises · Q6

Q. Comment on the shape of the MR curve in case the TR curve is a

(i) positively sloped straight line,

(ii) horizontal straight line.

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(i) A positively sloped straight-line $TR$ has constant slope, so $MR$ is a horizontal line at a positive height. (ii) A horizontal $TR$ has zero slope, so $MR = 0$ (the $MR$ curve lies on the output axis).

Marginal revenue equals the slope of the total revenue curve, $MR = \dfrac{\Delta TR}{\Delta q}$ , so the shape of the $TR$ curve tells us the shape of the $MR$ curve. …

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Q.Comment on the shape of the MR curve in case the TR curve is a

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