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WAGE: A factor payment to the owner of labor for using labor services in the production of goods and services. Wages are included in the National Income and Product Accounts maintained by the Bureau of Economic Analysis under the official title compensation of employees. Wages is the largest of the four factor payments, accounting for about 70% of the income earned by the household sector. The other factors of production (and their corresponding resource) are: interest (capital), rent (land), and profit (entrepreneurship).
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                           TOTAL REVENUE CURVE, MONOPOLISTIC COMPETITION: A curve that graphically represents the relation between the total revenue received by a monopolistically competitive firm for selling its output and the quantity of output sold. It is combined with the total cost curve to determine economic profit and the profit maximizing level of production. The slope of the total revenue curve is marginal revenue. Monopolistic competition is a market structure with a large number of relatively small firms that sell similar but not identical products. Each firm is small relative to the overall size of the market such that it has some market control, but not much. In other words, it can sell a wide range of output at a narrow range of prices. This translates into a relatively elastic demand curve. If a monopolistically competitive firm wants to sell a larger quantity, then it must lower the price.The total revenue curve reflects the degree of market control held by a firm. For a perfectly competitive firm with no market control, the total revenue curve is a straight line. For firms with more market control, such as monopolistic competition, the slope of the total revenue curve flattens at larger quantities. The slope of this total revenue curve is marginal revenue. Total Revenue Curve, Sandwich Style |  | The total revenue curve for Manny Mustard's House of Sandwich is displayed in the exhibit to the right. Key to this curve is that Manny Mustard is a monopolistically competitive provider of Deluxe Club Sandwiches and thus faces a negatively-sloped demand curve. Larger quantities of output are only possible with lower prices.The vertical axis measures total revenue and the horizontal axis measures the quantity of output (number of sandwiches). Although quantity on this particular graph stops at 10 sandwiches of medicine, it could go higher. This curve indicates that if Manny Mustard's House of Sandwich sells 1 sandwich (at $5.25 per sandwich), then it receives $5.25 of total revenue. Alternatively, if it sells 10 sandwiches (at $4.75 per sandwich), then it receives $47.50 of total revenue. While the curvature is slight, the total revenue curve for monopolistic competition is not a straight line. While the curvature is slight, the total revenue curve for monopolistic competition is not a straight line. For Manny Mustard the total revenue curve has a slightly flatter slope as more output is produced. The changing slope of this curve is due to the changing price.
 Recommended Citation:TOTAL REVENUE CURVE, MONOPOLISTIC COMPETITION, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2025. [Accessed: February 8, 2025]. Check Out These Related Terms... | | | | | | | | | Or For A Little Background... | | | | | | | | | And For Further Study... | | | | | | | | Related Websites (Will Open in New Window)... | | | |
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Today, you are likely to spend a great deal of time at a flea market seeking to buy either one of those memory foam pillows or a remote controlled train set. Be on the lookout for spoiled cheese hiding under your bed hatching conspiracies against humanity. Your Complete Scope
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It's estimated that the U.S. economy has about $20 million of counterfeit currency in circulation, less than 0.001 perecent of the total legal currency.
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"Learn to enjoy every minute of your life. Be happy now. Don't wait for something outside of yourself to make you happy in the future. Think how really precious is the time you have to spend, whether it's at work or with your family. Every minuteshould be enjoyed and savored." -- Earl Nightingale
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