Suppose the demand curve for a firm is Q = 50 - 0.125P, where Q measures units of output and P is the price per unit. The firm's marginal revenue is MR = ____.

Question

Quizplus · Accepted Answer

To find the marginal revenue (MR), we first express the demand curve in terms of P, which gives us P = 400 - 8Q. Then, taking the derivative of the revenue function (R = P*Q) with respect to Q, where P is substituted from the demand equation, we get MR = d/dQ (400Q - 8Q^2) = 400 - 16Q.

Suppose the Demand Curve for a Firm Is Q =