Answer to Question #56994 in Macroeconomics for Zafar
Total revenue is maximized, when marginal revenue MR = 0.
MR = TR' = (P*Q)' = (27.5Q - Q^2/40)' = 27.5 - Q/20
MR = 0, so 27.5 - Q/20 = 0,
Q/20 = 27.5
Q = 550 units.
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