Question

The monopoly firm's marginal cost curve is the horizontal sum of the marginal cost curves of its individual plants. (why?)

Answer 1

Heya....

A firm of any product consist the large number of industries in it that is called individual plants...

So if we want to calculate the marginal cost of monopoly firm then we gave to count it's all the plants cost as in terms of total counting....

Suppose, we have to found the marginal cost of Indian railway then we will sum up the all the rails of India as individual but it's aggregate....

Answer 2

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SLOPE of marginal revenue curve is less than slope of marginal cost curve

• They have the same constant, and the marginal revenue curve is twice as steep as the demand curve.
• The coefficient on Q is twice as large in the marginal