A firm faces the following linear inverse demand for its product P = 60 - 2Q. a) Find the firm's total revenue function TR (Q). b) Find the expression for the firm's marginal revenue. c) Assuming that the marginal cost of production is given by MC=8. What will be the equilibrium output and price?

A firm faces the following linear inverse demand for its product P = 60 - 2Q. a) Find the firm's total revenue function TR (Q). b) Find the expression for the firm's marginal revenue. c) Assuming that the marginal cost of production is given by MC=8. What will be the equilibrium output and price?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

ChapterB: Differential Calculus Techniques In Management

Section: Chapter Questions

Problem 5E

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Question

A firm faces the following linear inverse demand for its product P = 60 - 2Q.

a) Find the firm's total revenue function TR (Q).

b) Find the expression for the firm's marginal revenue.

c) Assuming that the marginal cost of production is given by MC=8. What will be the equilibrium output and price?

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