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Economic Definition of monopoly average revenue curve. Defined.

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Term monopoly average revenue curve Definition: A curve that graphically represents the relation between average revenue received by a monopoly firm for selling its output and the quantity of output sold. Because average revenue is essentially the price of a good, the average revenue curve (in most circumstances) is also the demand curve for a monopoly firm's output. The negative slope of the average revenue curve indicates that a monopoly has market control. The average revenue is used in conjunction with the monopoly's average total cost curve to determine economic profit.

 

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