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-.004Q_X²

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-.004Q_X²

Quizplus · Accepted Answer

The marginal revenue equation is derived from the demand function, but the given equation does not correctly represent the marginal revenue derived from the provided demand function. Marginal revenue would involve the derivative of the revenue function, which is not directly provided by the demand function's coefficients in the manner shown.

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

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