A monopolist's demand function is p = 300 - 5x, answer the questions associated with this information.
Q1) Find the marginal revenue function.
Q2) Find the relationship between the slope MR and AR.
Q3) At what price is the marginal revenue zero?
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Answered by
10
Marginal revenue function = 300 - 10x
Step-by-step explanation:
A monopolist's demand function is p = 300 - 5x
Total Revenue = px = (300 - 5x)x
=> Total Revenue = = 300x - 5x²
Marginal revenue = d(Total Revenue)/dx = 300 - 10x
Marginal revenue function = 300 - 10x
300 - 10x = 0
=> 10x = 300
=> x = 30
at Price 30 Marginal Revenue is Zero
Answered by
6
Step-by-step explanation:
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