The problem asks what happens to the marginal revenue curve of a firm when the demand curve shifts to the right.
2025/7/1
1. Problem Description
The problem asks what happens to the marginal revenue curve of a firm when the demand curve shifts to the right.
2. Solution Steps
A rightward shift in the demand curve means that at each price, a larger quantity is demanded, or equivalently, a higher price can be charged for each quantity. Since marginal revenue is derived from the demand curve, a rightward shift in the demand curve generally implies a rightward shift in the marginal revenue curve as well. The firm can now sell more at a higher price.
3. Final Answer
The marginal revenue curve would shift to the right.