Market demand and marginal cost facing a monopolist are give

Market demand and marginal cost facing a monopolist are given below Use this information to answer the tollowing question o Q 5000-2P MC MC = 2Q+100 What is the equation that represents the firm\'s marginal revenue? MR--AQ + 2500 MR--Q+ 2500 MR-2Q+ 10000 MR-2Q+2500

Solution

Option B.

2P = 5000 - Q

P = 2500 - 0.5 Q

Total revenue = Price * quantity = 2500 Q - Q^2

MR = differentiating Tr with respect to Q = 2500 - Q