Question

p=120-2q find a) MC and elasticity of demand when q=10​

Answer 1

Explanation:

Given dd fun : p = 120 - 2q

Marginal cost (MC) : Increase in Total cost resulting from the production of one extra unit of output.

MC =dp/dq

= - 2

Elasticity = (dq/q) / (dp/p)

= p / (q* MC)

Now

when q = 10,

p = 120 - 20 = 100

Elasticity = 100 / ((10* (-2))

= - 5