20. Assume that demand faced by a firm is given by P(q), where price is P...
20. Assume that demand faced by a firm is given by P(q), where price is P and q is the quantity demanded. In this case, marginal revenue MR(q) is:a. MR(q) = (dP(q)/dq) + Pb. MR(q) = (dP(q)/dq).q + Pc. MR(q) = Pd. MR(q) = (dP(q)/dq).q e. MR(q) = (dP(q)/dq).q
Homework Answers
c. MR(q) = P
(Total Revenue, TR = Pq
So, Marginal Revenue, MR(q) = d(TR)/dq = P)
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