If TR = $500Q - $2Q2:
A)MR = $500 - $2Q.
B)MR = $500 - $4Q.
C)MR = $500Q - $2.
D)MR = $500 - $4.

Question

Quizplus · Accepted Answer

The formula for calculating marginal revenue (MR) is the change in total revenue divided by the change in quantity. In this case, the change in total revenue is equal to the change in quantity multiplied by the marginal revenue curve's slope. Since TR = $500Q - $2Q^2, the derivative of this equation with respect to Q gives us MR = $500 - $4Q. Therefore, the correct answer is B. The formula to calculate MR (marginal revenue) is given by the change in total revenue divided by the change in quantity (Q), which can be expressed as MR = ΔTR / ΔQ. Taking the derivative of TR = $500Q - $2Q2, we get MR = $500 - $4Q. Therefore, the correct choice is B.