Suppose a product's demand curve can be expressed as Q = 10 - 5P. Marginal revenue is:

Name: Suppose a product's demand curve can be expressed as Q = 10 - 5P. Marginal revenue is:
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Quizplus · Accepted Answer

Marginal revenue is the change in total revenue divided by the change in quantity. In this case, total revenue is equal to price times quantity, or TR = P * Q. So, marginal revenue is:MR = d(TR)/dQ = P + Q * dP/dQSubstituting the given demand curve, we get:MR = P + (10 - 5P) * (-5) = 2 - 0.4P

Suppose a Product's Demand Curve Can Be Expressed as Q