Suppose that P = a - bQ. Marginal revenue can be expressed as:

Name: Suppose that P = a - bQ. Marginal revenue can be expressed as:
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Question

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Marginal revenue is derived from the total revenue, which is P*Q in a linear demand curve scenario. Given P = a - bQ, total revenue (TR) = P*Q = (a - bQ)Q = aQ - bQ^2. The marginal revenue (MR) is the derivative of TR with respect to Q, which gives MR = a - 2bQ.

Suppose That P = a - BQ