# 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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Chapter 10 / Lesson 11Understand 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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