Ask Question
7 March, 02:39

The demand and marginal cost equations below represent those faced by a monopolist in the market for lunar exploratory vehicles. D: Qd = (minus 1/2) P + 10,000 MC: MC = 2Q + 50 What equation best represents the firm's marginal revenue?

+5
Answers (1)
  1. 7 March, 02:50
    0
    MR = - P + 10,000

    Explanation:

    Qd = (-1/2) P + 10,000 ... (1)

    Total Revenue = TR = P. Qd = P[ (-1/2) P + 10,000]

    TR = P[ (-1/2) P + 10,000) ] = (-1/2) P^2 + 10,000P ... (2)

    To obtain MR, equation 2 is differentiated with respect P as follows:

    MR = TR' = - P + 10,000

    Therefore, the best equation to represent the firm's marginal revenue (MR) is MR = - P + 10,000.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The demand and marginal cost equations below represent those faced by a monopolist in the market for lunar exploratory vehicles. D: Qd = ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers