The total revenue function for a monopoly firm is R(Q) = p(Q)Q, where p is price, Q is the quantity of output demanded, p(Q) is the firm's inverse-demand function, and dp/dQ < 0 is the derivative of p with respect to Q.

(i) Use the product rule to obtain the monopoly firm's marginal revenue function, that is, MR = dR/dQ.

(ii) Carefully rearrange the marginal revenue function from question 1.(i) above so that MR = dR/dQ = P(1 + 1 ), where dQ p . dp Q = is the elasticity of demand with respect to price.