Explore BrainMass

Explore BrainMass

    Calculating Total Revenue and Marginal Revenue

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    A firm's demand function is defined as Q = 14 - 2P.

    a) Use this function to calculate total revenue when price is equal to 3 and when price is equal to 4.
    b) What is marginal revenue equal to between P=$3 and P=$4?

    © BrainMass Inc. brainmass.com October 10, 2019, 5:02 am ad1c9bdddf

    Solution Preview

    When P = 3:
    Q = 14 - 2P
    Q = 14 - 2(3)
    Q = 14 - 6
    Q = ...

    Solution Summary

    This solution shows how to calculate a firm's total revenue and marginal revenue from its demand function. All calculations are given in full.