Given the demand function Q_X = 5,000 - 250P_X +120P_Y +.04I where P_Y= $50.00 and I = $60,000, marginal revenue will be zero where
Q = 13,400.

Question

Given the demand function Q_X = 5,000 - 250P_X +120P_Y +.04I where P_Y= $50.00 and I = $60,000, marginal revenue will be zero where Q = 13,400.

Quizplus · Accepted Answer

Marginal revenue is the additional revenue that a firm receives from selling one more unit of a good or service. It is calculated as the change in total revenue divided by the change in quantity sold. The demand function provided does not directly give information about marginal revenue, as it describes the relationship between quantity demanded and the price of the good, the price of another good, and income. To find where marginal revenue is zero, one would typically need to derive the total revenue function from the demand function, then find its derivative (marginal revenue) and set it equal to zero. The statement provided does not perform these steps, nor does it directly relate to how marginal revenue is calculated or determined.

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

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