Answers

2015-04-08T11:43:28+05:30

This Is a Certified Answer

×
Certified answers contain reliable, trustworthy information vouched for by a hand-picked team of experts. Brainly has millions of high quality answers, all of them carefully moderated by our most trusted community members, but certified answers are the finest of the finest.
Demand curve is given by
P = 100 - 2q
Total revenue will be given by
TR = P×q = (100-2q)×q = 100q - 2q²

(a) marginal revenue is the derivative of TR. So

MR= \frac{d(TR)}{dq} = \frac{d}{dq}(100q-2q^2) =100-4q

So marginal revenue is 100-4q. 

(b) MR = 0
⇒ 100 - 4q = 0
⇒ 4q = 100
⇒ q = 100/4 = 25

At q=25, 
TR =  100q - 2q²
     = 100×25 - 2×25²
     = 2500 - 1250
     = 1250
Marginal Revenue is 0 at Price 1250.
0