MR and TR Computation using a demand curve equation
Not what you're looking for?
Can you assist me with the following problem. Thank you.
If we have a demand curve which can be described by Pd= 72.33-1.76Q, and we have a starting price of $50, what happens to TR when the price falls to $40? Find whether MR is positive or negative and fully explain why. Now, for the same demand curve, what happens to MR when the price falls from $20 to $10? Is this consistent with what happened in the first instance, or not? Show this in Excel by graphing a TR curve.
Purchase this Solution
Solution Summary
The solution computes for the Marginal and Total Revenue using a demand curve equation. It provides both a guide to the calculations and a sample computation in Excel.
Solution Preview
** Please see the attached file for the complete solution response **
Guide computation:
Demand curve which can be described by Pd= 72.33-1.76Q
0 = 72.33-1.76Q
1.76Q = 72.33
Q = 72.33 / 1.76
Q = 41.09659
at a starting price of $50,
TR = Price x quantity
TR= 50 x ...
Purchase this Solution
Free BrainMass Quizzes
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.