49. In which of the following market models do demand and marginal revenue not diverge?

A. pure competition

B. monopolistic competition

C. pure monopoly

D. oligopoly

Question

49. In which of the following market models do demand and marginal revenue not diverge?

A. pure competition

B. monopolistic competition

C. pure monopoly

D. oligopoly

BlackTom AI · Accepted Answer

In pure competition the firm's demand curve is perfectly elastic at the market price, so the price (demand) and marginal revenue are the same.

1. Relevant concepts
- Demand curve for an individual firm: shows price(s) the firm can charge for various output levels.
- Total revenue (TR) = P × Q. Marginal revenue (MR) = d(TR)/dQ.
- Market models differ by the slope of the firm’s demand: perfectly elastic (horizontal) in pure/perfect competition; downward-sloping in monopoly, monopolistic competition, and most oligopoly situations.

2. Step-by-step reasoning
- In pure (perfect) competition each firm is a price taker: it can sell any quantity at the market price P but cannot influence P. So the firm’s demand curve is horizontal at P.
- Compute TR and MR for that case: TR = P × Q (with P constant). Differentiate: MR = d(TR)/dQ = d(PQ)/dQ = P (since P is constant).
- Therefore MR = P for every unit sold; and because the demand curve for the firm is also at P, demand and MR coincide (they do not diverge).

3. Calculations / intermediate steps (numeric example)
- Let market price P = 10. Then TR = 10Q. MR = d(10Q)/dQ = 10. The firm’s demand is also P = 10 for any Q. So demand = MR = 10.

4. Why the correct answer is correct
- The equality MR = demand holds only when price does not change with Q. That is exactly the price-taker condition of pure competition. Hence demand and MR do not diverge in pure competition.

5. Why other options are incorrect
- Monopolistic competition: each firm faces a downward-sloping demand due to product differentiation; MR < demand for additional units.
- Pure monopoly: monopoly faces market demand (downward-sloping) so MR lies below demand (MR < P) because reducing price to sell an extra unit lowers revenue on prior units.
- Oligopoly: firms typically have market power and face a downward-sloping demand (or interdependent strategies), so MR does not equal demand.

6. Conclusion
- Therefore the correct choice is A (pure competition), matching the provided answer.

49. In which of the following market models do demand and marginal revenue not diverge? A. pure competition B. monopolistic competition C. pure monopoly D. oligopoly 单项选择题

类似问题

The marginal revenue of the fifth item sold is ...... (Do not include the $ sign in your answer)

The marginal revenue of the third item sold is ...... (Do not include the $ sign in your answer)

Marginal revenue is the change in

The table below captures the relevant portion of a demand schedule facing a monopolist. A Demand Schedule Facing a Monopolist Price Quantity $10 1 $9 2 $8 3 $7 4 $6 5 Refer to the table above. What is the marginal revenue associated with selling the 3rd unit of output?

65. Refer to the diagram, which pertains to a purely competitive firm. Curve C represents A. total revenue and marginal revenue. B. marginal revenue only. C. total revenue and average revenue. D. average revenue and marginal revenue.

10. In a monopolistically competitive market, the firm's marginal revenue schedule: A. is the same as the demand schedule. B. lies below the demand schedule. C. lies above the demand schedule. D. is not dependent on the demand schedule.

更多留学生实用工具

智能学习助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单