Question
Can anyone help? I am stuck on one piece of an answer I was given in a CH document: Given the following facts, how do
Can anyone help? I am stuck on one piece of an answer I was given in a CH document: Given the following facts, how do I calculate Marginal Revenue?
Type of firm: Monopoly Firm
The firm maximizes profits.
Average revenue (demand) curve: P = 360 0.04Q
Cost function: C = 60Q + 5000.
Marginal cost (MC) of production: $60.
Q=output
P=price in dollars
C=cost
I was given by a Course Hero solution:
MR=8/8Q*TR
=8/8Q*(360Q-0.04Q2)
=360-0.08Q
In the above answers given, I don't understand where 8/8Q and 0.08Q came from. I really want to master this material, but I felt lost here. Thanks for any help!
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