Calculating Total Revenue and Marginal Revenue
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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?
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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.
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a)
When P = 3:
Q = 14 - 2P
Q = 14 - 2(3)
Q = 14 - 6
Q = ...
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