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In this problem, How do I go from TR to MR? It looks like im dropping the Q but how do I go from .8
In this problem, How do I go from TR to MR? It looks like im dropping the Q but how do I go from .8 to .16?
P=a+bQ
a=Y intercept=Maximum price consumers are willing to pay
a=$160
b=slope=change in P/Change in Q
b=(152-160)/(10-0)
b=-8/10
b=-0.8
P=160-0.8Q
ii)
TR=P*Q
TR=(160-0.8Q)*Q
TR=160Q-0.8Q2
MR=TR/Q
MR=160-0.16Q
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