In the past, I’ve used the metaphor of a monopolistically competitive firm’s marginal revenue curve when discussing the differences between the marginal cost of production and that of a perfect competitor. I like the term because it’s fairly straightforward and can make for a good comparison to the other monopolistically competitive firms.

The marginal revenue curve is a graph plotting the marginal revenue of a firm to the marginal cost of production. The more efficient the firm is at producing a given good, the more the marginal revenue curve will rise. The curve rises until it hits the maximum point at which the marginal revenue curve flattens out. It is a bit like the price of a good and the price of a good is where the marginal revenue curve hits the maximum.

I love the idea of a monopolistically competitive firm making marginal income.

The idea is to produce a good, and then sell it for a price that’s not too high, but the price of the good is higher than the price of the marginal revenue curve. Theoretically, this is an efficient way to produce a good, since if you produce a good a million times in a row and sell it for $10,000, you only pay $9,000 for the good and $1,000 for the marginal revenue curve.

This is known as a “marginal revenue curve” and is a way to model the optimal profit for a monopolistically competitive firm. The problem with this is that it is a marginal-only optimal solution, and the monopolistically competitive firm has to make a profit from the sale of the good.

Marginal revenue curves are a very powerful tool in the theory and practice of economics, but it’s much more difficult to apply to the world of business.

A company’s marginal revenue curve is a curve of all the marginal revenue that the firm receives from selling the good. As the firm grows, this curve is the amount that the firm is willing to pay to grow the firm. The problem with this is that it is a very narrow band, and the marginal revenue that the firm can receive from selling the good is very small compared to the total number of marginal revenue the firm can earn from selling the good.

The problem with this curve is that they are only applicable to firms in the same industry. So a company that makes the same product as another company will see its marginal revenue curve shrink over time. This is because this curve is not applicable to the firm itself, but only to the product that it sells. For example, Coca-Cola is not really a Coca-Cola company, but a family of companies that includes Coca-Cola.

This is because Coca-Cola’s business model has not changed. It is a family of companies that has been around for 100 years. It is hard to imagine Coca-Cola changing its business model in the next 100 years.

For the next 100 years, Coca-Cola will grow its profits slightly, and they will see their marginal revenue curve shrink for a little while as they increase their market share. But then they will see their marginal revenue curve start to grow again. In this way, the company will see it’s revenue curve move along a flat line.

Avatar photo


Wow! I can't believe we finally got to meet in person. You probably remember me from class or an event, and that's why this profile is so interesting - it traces my journey from student-athlete at the University of California Davis into a successful entrepreneur with multiple ventures under her belt by age 25

Leave a Reply

Your email address will not be published. Required fields are marked *