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 value of marginal revenue at 15 units of output is $____.

Question

Quizplus · Accepted Answer

To find the marginal revenue (MR), we first need to express the price (P) in terms of quantity (Q) from the demand curve: P = 400 - 8Q. The total revenue (TR) is P * Q = (400 - 8Q)Q = 400Q - 8Q^2. The marginal revenue is the derivative of TR with respect to Q: MR = d(TR)/dQ = 400 - 16Q. Plugging in Q = 15, MR = 400 - 16(15) = 160.

Suppose the Demand Curve for a Firm Is Q =