A monopolist demand curve is p=100-2q a) find marginal revenue function b) at what price is marginal revenue is zero
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Demand curve = p = 100 - 2 q
q = quantity and p = demand
R (q) = Revenue = demand * quantity = p q = 100 q - 2 q²
Revenue from a demand or selling of q-1 items = R(q-1)
= 100 (q-1) - 2 (q-1)² = 100 q - 100 - 2 q² + 4 q - 2
Marginal revenue function = R(q) - R(q-1) = 102 - 4 q
MR = 0 => 102 = 4 q => q = 25.5 ie., 25 or 26. we can take..
Marginal revenue is not exacty zero. Its a small loss (-2) when q = 25 and very small (+2) when q = 26.
===========================
R(q) = 100 q - 2 q²
if we use calculus to differentiate the revenue:
MR(q) = marginal revenue: 100 - 4 q
MR(q) = 0 for q = 25.
q = quantity and p = demand
R (q) = Revenue = demand * quantity = p q = 100 q - 2 q²
Revenue from a demand or selling of q-1 items = R(q-1)
= 100 (q-1) - 2 (q-1)² = 100 q - 100 - 2 q² + 4 q - 2
Marginal revenue function = R(q) - R(q-1) = 102 - 4 q
MR = 0 => 102 = 4 q => q = 25.5 ie., 25 or 26. we can take..
Marginal revenue is not exacty zero. Its a small loss (-2) when q = 25 and very small (+2) when q = 26.
===========================
R(q) = 100 q - 2 q²
if we use calculus to differentiate the revenue:
MR(q) = marginal revenue: 100 - 4 q
MR(q) = 0 for q = 25.
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