Principles of Microeconomics / Unit 8 MIC 0714 short lesson, about 20 seconds
The Twice-as-Steep Rule
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The idea
When demand is a straight line, marginal revenue is a straight line with the same intercept and twice the slope, hitting zero at half the quantity demand does.
In practice
Demand from twelve dollars to twelve thousand doses gives marginal revenue from twelve dollars to six thousand.
Where people slip
The rule holds for straight-line demand only. For a curved demand the column must be computed.
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