Asked by Garrett Brown on May 14, 2024
Verified
if demand for the book is Q 1,600 100p, the marginal revenue function is given by
A) 16Q Q2/100.
B) 16 Q/50.
C) 1,600 200.
D)
100) e.1/100.
Marginal Revenue Function
A mathematical representation showing how revenue changes as the quantity of goods sold varies.
Book
A collection of printed or handwritten pages, attached along a single edge and encased in a covering.
- Acquire an understanding of demand functions and their relationship with price and quantity.
Verified Answer
AG
Amanda GoldingMay 19, 2024
Final Answer :
B
Explanation :
The formula for marginal revenue is the derivative of the total revenue function with respect to quantity. Here, the demand function given is Q = 1,600 100p.
To find the total revenue function, we need to multiply the quantity by the price, which is given by the demand function. So, we have:
R(Q) = Qp = Q(1,600 - 100Q)
Taking the derivative with respect to Q, we get:
MR(Q) = 1,600 - 200Q
Simplifying this expression, we get:
MR(Q) = 16 Q/50
Therefore, the correct choice is B.
To find the total revenue function, we need to multiply the quantity by the price, which is given by the demand function. So, we have:
R(Q) = Qp = Q(1,600 - 100Q)
Taking the derivative with respect to Q, we get:
MR(Q) = 1,600 - 200Q
Simplifying this expression, we get:
MR(Q) = 16 Q/50
Therefore, the correct choice is B.
Learning Objectives
- Acquire an understanding of demand functions and their relationship with price and quantity.