If demand is estimated to be $Q _ { d }$ = 240 -6P,the marginal revenue function is

Question

Quizplus · Accepted Answer

The marginal revenue (MR) function is derived from the inverse demand function, which can be obtained by solving the given demand equation for P. The given demand equation is $Q_d = 240 - 6P$. Solving for P gives $P = 40 - \frac{1}{6}Q$. The marginal revenue is then found by differentiating the total revenue (TR = P*Q) with respect to Q, using the inverse demand function. Since $P = 40 - \frac{1}{6}Q$, $TR = (40 - \frac{1}{6}Q)Q$, and differentiating this with respect to Q gives $MR = 40 - \frac{1}{3}Q$, which matches the form of option A.

If Demand Is Estimated to Be QdQ _ { d }Qd​

If Demand Is Estimated to Be $Q _ { d }$