Consider a situation where a monopolist faces the following inverse demand curve, p = 350 - q and...
Question:
Consider a situation where a monopolist faces the following inverse demand curve, p = 350 - q and constant marginal costs of MC = 50. What are the equilibrium price and quantity for this monopolist?
Total revenue:
Total revenue is directly related to the product of price into quantity. It rises with a rise in the price into quantity, and it falls with the fall in price into quantity. It shows that they move in the same direction.
Answer and Explanation: 1
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As we know
p = 350-q
MC = 50
{eq}TR =p\times q {/eq}
{eq}TR =(350-q)q {/eq}
{eq}TR=350q-q^{2} {/eq}
MR =350-2q
At equilibrium
MR=MC
350-...
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Total Revenue in Economics: Definition & Formula
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Chapter 10 / Lesson 11
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Understand what total revenue is. Learn the definition of total revenue, total revenue formula, total revenue equation, and how to calculate total revenue.
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