Asked by Dharmesh Kharel on May 23, 2024
Verified
if demand for the book is Q 1,000 300p, the marginal revenue function is given by
A) 300.
B) 1,000 600.
C) 3.33 Q/150.
D) 3.33Q Q2/300.
E) 1/300.
Marginal Revenue
The additional income received from selling one more unit of a product or service.
Demand Function
A mathematical representation showing the relationship between the quantity of a good that consumers are willing to buy and its price, along with other factors like income and prices of related goods.
- Understand the concept of marginal revenue and its calculation.
- Master the relationship between demand functions and marginal revenue functions.
Verified Answer
AK
ABDULAZIZ KHALID ABDULAZIZMay 30, 2024
Final Answer :
C
Explanation :
The marginal revenue function is the derivative of the demand function with respect to quantity, multiplied by the price. Taking the derivative of Q 1,000 300p with respect to Q gives 1,000/300, or 3.33. Multiplying by the price, we get 3.33p or 3.33 Q/150 as the marginal revenue function.
Learning Objectives
- Understand the concept of marginal revenue and its calculation.
- Master the relationship between demand functions and marginal revenue functions.