Asked by Tehilla Peyamipour on Jul 05, 2024
Verified
if demand for the book is Q 900 300p, the marginal revenue function is given by
A) 3 Q/150.
B) 900 600.
C) 3Q Q2/300.
D)
300) e.1/300.
Marginal Revenue
The additional income from selling one more unit of a good or service.
Demand Function
A mathematical expression that describes the relationship between the price of a good or service and the quantity demanded by consumers.
- Comprehend the principle of marginal revenue and the process involved in its computation.
- Achieve proficiency in understanding the connection between demand functions and marginal revenue functions.
Verified Answer
TN
Taylor NelsonJul 05, 2024
Final Answer :
A
Explanation :
The marginal revenue (MR) function is the derivative of the demand function with respect to Q.
MR = d(Q-)/dQ
MR = - + Q(d/-)/dQ
MR = - + Q(-/^2)
MR = --Q/^2
Substituting the given values, we get
MR = 900-300p-300Q/150
MR = 900-300p-2Q
So the best choice is A, 3(--2Q)/150, which is the correct expression for the marginal revenue function.
MR = d(Q-)/dQ
MR = - + Q(d/-)/dQ
MR = - + Q(-/^2)
MR = --Q/^2
Substituting the given values, we get
MR = 900-300p-300Q/150
MR = 900-300p-2Q
So the best choice is A, 3(--2Q)/150, which is the correct expression for the marginal revenue function.
Learning Objectives
- Comprehend the principle of marginal revenue and the process involved in its computation.
- Achieve proficiency in understanding the connection between demand functions and marginal revenue functions.