The Residual Demand Curve and the Residual Marginal Revenue Curve

question 52

True/False

The residual demand curve and the residual marginal revenue curve represent a dominant firm's demand and marginal revenue.

---

Definitions:

Average Net Income

The mean amount of net earnings calculated over a specified period, indicating the profitability of a business after all expenses have been subtracted from revenues.

Accounting Return

A measure of profitability in relation to various accounting measures, such as net income or assets.

Average Accounting Return (AAR)

An investment’s average net income divided by its average book value.

Return on Equity (ROE)

A measure of financial performance calculated by dividing net income by shareholders' equity, reflecting the profitability relative to the equity.