# Answer to Question #51186 in Other Economics for zem lotjem

Question #51186

A monopolist’s demand curve is given by P = 100 – 2q.

(a) Find his marginal revenue function.

(b) At what price is marginal revenue zero?

(a) Find his marginal revenue function.

(b) At what price is marginal revenue zero?

Expert's answer

a. We can construct the marginal revenue function by calculating total

revenue as a function of quantity and then taking the derivative.

TR = P * Q= (100 – 2q)*q = 100q – 2q^2

So, the marginal revenue function can be calculating as follows:

MR = d TR /d Q = 100 – 4q

b. If MR = 0

100 – 4q = 0

4q = 100

q = 25

P = 100 – 2q = 100 – 50 = 50

revenue as a function of quantity and then taking the derivative.

TR = P * Q= (100 – 2q)*q = 100q – 2q^2

So, the marginal revenue function can be calculating as follows:

MR = d TR /d Q = 100 – 4q

b. If MR = 0

100 – 4q = 0

4q = 100

q = 25

P = 100 – 2q = 100 – 50 = 50

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