2. Monopoly Pricing. An Analytical Example. Consider a firm with the demand curve P = 500-Q and a cost function TC 2500 +4Q². a. What is the marginal revenue function for this firm? MR = b. Intuitively, why is marginal revenue more steeply sloped than demand (average revenue?) Reason for Steeper MR Slope:

2. Monopoly Pricing. An Analytical Example. Consider a firm with the demand curve P = 500-Q and a cost function TC 2500 +4Q². a. What is the marginal revenue function for this firm? MR = b. Intuitively, why is marginal revenue more steeply sloped than demand (average revenue?) Reason for Steeper MR Slope:

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter14: Monopoly

Section: Chapter Questions

Problem 14.5P

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