|Date:||September 10, 2013|
|Length:||3 / 684|
|No of views:||0|
|Essay rating:||good 0, average 0, bad 0 (total score: 0)|
The marginal revenue curve (MR) lies below the demand curve because the “gain in revenue from an extra unit of output is less than the price charged for that unit of output” (McConnell and Brue, 2004, p.11). This makes Quasar a price maker, not a price taker. Consequently, the pricing strategy determined by Quasar will affect demand, revenues and profits...
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This makes Quasar a price maker, not a price taker. Consequently, the pricing strategy determined by Quasar will affect demand, revenues and profits. As Quasar’s price increases, demand increases, and total revenue and profit increase at a diminishing rate. Total revenue (TR) is maximized at 13.5($bn), when marginal revenue equals marginal cost; in this instance, at 5...
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