Given the demand function Q_X = 5,000 - 250P_X +120P_Y +.04I where P_Y= $50.00 and I = $60,000, the marginal revenue equation is:
MR = 53.6-.008Q_X

Question

Given the demand function Q_X = 5,000 - 250P_X +120P_Y +.04I where P_Y= $50.00 and I = $60,000, the marginal revenue equation is: MR = 53.6-.008Q_X

Quizplus · Accepted Answer

The marginal revenue equation can be found by taking the derivative of the demand function with respect to quantity, and then solving for price. This gives MR = 53.6 - 0.008Q_X. Therefore, the statement is true.

Given the Demand Function QX = 5,000 - 250PX +120PY

Given the Demand Function Q_X = 5,000 - 250P_X +120P_Y