if demand for the book is Q = 2,000 - 300p, the marginal revenue function is given by A)300. B)6.67 - Q/150. C)2,000 - 600. D)6.67Q - Q²/300. E)-1/300.

Question

Quizplus · Accepted Answer

The marginal revenue function for a linear demand function is given by MR = p(1 - 1/|E|), where E is the price elasticity of demand. In this case, E = -F1F1F1S1/F1F1F10 = -2000/300 = -6.67. Therefore, MR = p(1 + 1/6.67) = 7.67p. Solving for Q in terms of p and MR, we get Q = (150/6.67)(MR - 300). Substituting the expression for MR, we get Q = (150/6.67)(7.67p - 300) = 10,899p - 263,736/3. Therefore, the marginal revenue function is given by MR = dQ/dp = 10,899. Since this is closest to option B, that is the best choice.

If Demand for the Book Is Q = 2,000 -