I am very confused with the two concepts. It seems to me that demand curve is marginal benefit and marginal revenue can be below the demand curve. I may be wrong. anyone has a better view to understand these two concepts?
MB is the benefit to the consumer from buying one more unit. MR is the amount of $ brought in by companies from selling an additional unit. The difference is who it talks about, companies or consumers.
Thanks! What about price? Is it true that price=MB>=MR?
i wish i could help, but i struggle with these econ topics as well. for what you are asking, i think there is a graph that incorporates MB, MR, price, ATC, MC and some others. if you are using schweser it is in their notes for sure. what study notes are you using? ill try to get you the graph im referring to.
remember to try and focus on the main topics and what they mean. maybe under some condition all those things are true, and in others they are not. you will see maybe 1 or 2 questions relating to this topic on exam day (and maybe 0). it will not make or break you, but understanding how everything fits together and what it means will put you over the top. although i do not know every application or variation of the cost and revenue curves, i understand what they mean and how to use them. it is a difficult section for me but i have been scoring >80% for econ on practice exams regardless of this weakness. move on, come back to it later it will make more sense then.
Same problem here… Such a confusing topic and difficult to comprehend, i guess rote larning will help here. Lets see!!
Starbuk, thank you very much for all the answers! I also use Schweser notes. you are right about the focusing. I just finished a mock and feel that the questions are not that complicated but covering a lot of details.