Exhibit 27-6

-Refer to Exhibit 27-6.Let AA represent the value marginal product curve of an oligopolist.Which of the following could represent his marginal revenue product curve?

Question

Exhibit 27-6
 
-Refer to Exhibit 27-6.Let AA represent the value marginal product curve of an oligopolist.Which of the following could represent his marginal revenue product curve?

Quizplus · Accepted Answer

The marginal revenue product curve for an oligopolist is typically less steep than the value marginal product curve, as the oligopolist must consider the impact of their pricing and output decisions on the reactions of their rivals. Curve BB has a shallower slope than curve AA, making it a more likely candidate for the marginal revenue product curve. Curves CC and DD are steeper than AA, making them less likely candidates.

Exhibit 27-6 -Refer to Exhibit 27-6.Let AA Represent the Value Marginal Product