Question

Why is marginal revenue always halfway the average revenue?

Answer 1

Explanation:

A competitive firm's marginal revenue always equals its average revenue and price In a monopoly, because the price changes as the quantity sold changes, marginal revenue diminishes with each additional unit and will always be equal to or less than average revenue

Answer 2

$\huge{\fcolorbox{white}{pink}{Answer:}}$

♡The marginal revenue curve is always below the demand curve when the demand curve is downward sloping because, when a producer has to lower his price to sell more of an item, marginal revenue is less than price.

♡Because marginal revenue is less than price, the marginal revenue curve will lie below the demand curve.