Economics Terms Exercises - Marginal revenue

 

Exercise 1

Calculate total revenue, marginal revenue and average revenue for the following demand schedule:

 

P Q TR AR MR
10 0      
9 2      
8 4      
7 6      
6 8      
5 10      
4 12      
3 14      
2 16      
1 18      
0 20      

 

 

Exercise 2

Calculate the marginal revenue of a monopolist facing the following market demands:

a. p=1−q

 

b. p=20−3q

 

c. q=100−2p

 

d. p=2q-1/2

 

Exercise 3

Suppose marginal costs are given by MC=1/2. What is the profit-maximizing quantity of a monopolist facing inverse demand p=1−q?

 

Exercise 4

Draw a figure with the solution you obtained for exercise 3.

 

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