Question

If a perfectly competitive firm has a total cost function C=450+15q+2q² the market price of the commodity is Rs 115 per unit find the quantity produce by firm​

Answer 1

The formula for marginal revenue is:

marginal revenue = change in quantity

change in total revenue

Table 2. Marginal Revenue for Raspberries

Price Quantity Total Revenue Marginal Revenue

$4 1 $4 –

$4 2 $8 $4

$4 3 $12 $4

$4 4 $16 $4