This must decrease as rival firms' aggregate output increases in order for Cournot competition to hold, and if a strictly positive subsistence level is introduced to a CES function, this quantity becomes non-monotonic. It is given by price times the quantity 1 minus 1 over demand elasticity, showing that its sign is an indicator of elasticity. In oligopolies, this curve has a jump due to the kinked demand curve, and in monopolies, a deadweight lo
This must decrease as rival firms' aggregate output increases in order for Cournot competition to hold, and if a strictly positive subsistence level is introduced to a CES function, this quantity becomes non-monotonic. It is given by price times the quantity 1 minus 1 over demand elasticity, showing that its sign is an indicator of elasticity. In oligopolies, this curve has a jump due to the kinked demand curve, and in monopolies, a deadweight loss is caused because this curve, and not demand, determines quantity sold. For 10 points, name this curve that generally marks equilibrium where it meets marginal cost, and which measures the added revenue of an additional unit sold.
This must decrease as rival firms' aggregate output increases in order for Cournot competition to hold, and if a strictly positive subsistence level is introduced to a CES function, this quantity becomes non-monotonic.
marginal revenue [prompt on MR]