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Andrej [43]
3 years ago
12

If the demand (price) function is P(Q) = 100 − 4Q, find expressions for revenue function, R(Q) and marginal revenue function, MR

(Q). Hence estimate the MR for 10 units of sales.
Mathematics
1 answer:
djverab [1.8K]3 years ago
7 0

Answer:

R (Q) = 100Q - 4Q^2 , MR = 100 - 8Q , MR at Q (10) = 20

Step-by-step explanation:

Demand curve ie Price as a function of Quantity ; P (Q)  = 100 - 4Q

R, total revenue from sale = Q . P (Q)

R (Q) = (100 - 4Q) Q  

  • R (Q) = 100Q - 4Q^2

MR is addition to total revenue due to per unit change in sale, = d R / d Q

d ( 100Q - 4Q^2 ) / d Q  

  • MR = 100 - 8Q

MR at quantity , 10 unit of sales = 100 - 8 (10)

MR at Q (10) = 20

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