Principles of Microeconomics / Unit 8 MIC 0711 short lesson, about 20 seconds
Total Revenue Rises Then Falls
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The idea
Because a monopolist cuts the price on every unit to sell more, total revenue rises at first, peaks, and then falls as output grows. The peak is where demand is unit elastic.
In practice
The medicine's revenue climbs to thirty-six thousand at six thousand doses and falls after.
Where people slip
A price taker's revenue rises without limit; a price setter's does not.
Your place on the trail
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