2. Given the demand function of a certain good to be P + 20 = 750. a) Find the marginal revenue. b) Calculate the marginal revenue at level of output of 3 units. c) Estimate the change in total revenue due to increase of 1 unit from current level output of output of 5 units.

2. Given the demand function of a certain good to be P + 20 = 750. a) Find the marginal revenue. b) Calculate the marginal revenue at level of output of 3 units. c) Estimate the change in total revenue due to increase of 1 unit from current level output of output of 5 units.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter12: More Realistic And Complex Pricing

Section: Chapter Questions

Problem 12.1IP

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Question

2. Given the demand function of a certain
good to be P + 2Q = 750.
a) Find the marginal revenue.
b) Calculate the marginal revenue at level of
output of 3 units.
c) Estimate the change in total revenue due
to increase of 1 unit from current level output
of output of 5 units.

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