If the monopolist's demand is given by P = 100

Name: If the monopolist's demand is given by P = 100 - Q, marginal revenue is given by: A) MR = 100 - 2Q. B) MR = 100 - Q. C) MR = 100Q. D) MR = 100Q - Q 2 .
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Question

If the monopolist's demand is given by P = 100 - Q, marginal revenue is given by: A) MR = 100 - 2Q. B) MR = 100 - Q. C) MR = 100Q. D) MR = 100Q - Q².

Quizplus · Accepted Answer

The marginal revenue (MR) for a linear demand curve P = a - bQ is given by MR = a - 2bQ. Here, a = 100 and b = 1, so MR = 100 - 2Q.