A firm's demand curve is given by Q = 100

Question

A firm's demand curve is given by Q = 100 - 0.67P. What is the firm's corresponding marginal revenue curve?

Quizplus · Accepted Answer

The marginal revenue (MR) curve can be derived from the demand curve by doubling the slope of the inverse demand curve. The demand curve given is Q = 100 - 0.67P, which can be rewritten in inverse form as P = 150 - 1.5Q (by solving for P and adjusting coefficients accordingly). Therefore, the MR curve, which has twice the slope of the demand curve, is MR = 150 - 1.5Q.