If the demand curve for a monopolist is P = 100 -20Q, then the marginal revenue of that firm is given by the equation:
A)MR = 200 ? 20Q
B)MR = 50 ? 40Q
C)MR = 100 ? 20Q
D)MR = 100 ? 40Q

Question

Quizplus · Accepted Answer

The marginal revenue (MR) for a monopolist can be found by doubling the slope of the demand curve. Given the demand curve P = 100 - 20Q, the slope is -20. Doubling this slope gives -40, so the MR equation is MR = 100 - 40Q.

If the Demand Curve for a Monopolist Is P =