Purchase Solution

Follow-Up Question Regarding Solving for Price and Quantity

Not what you're looking for?

Ask Custom Question

For monopoly set the price when MC=MR
For calculating MR first write the equation for total revenue (TR)
TR=P*Q = (800-5Q)*Q --------(1)
Differentiate (1) w.r.t. Q to get MR
MR=dTR/dQ = 800 - 10Q----------(2)
MC = 15Q
Equate MC and MR, we get Q = 32
Put this in equation for P to calculate P, P=640

The above response was very helpful, however I am still having trouble figuring out the precise method used for solving for Q. What is the formula used to equate MC and MR?

Purchase this Solution
Solution Summary

The solution assists with solving the price and quantity.

Purchase this Solution
Free BrainMass Quizzes
Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

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.

View More Free Quizzes
Related BrainMass Solutions

  • Variance calculations

    245122 Accounting Variance Calculations Please see attached question. A company produces the follow incomplete information regarding actual and budgeted direct material and production: Budgeted Actual Units produced 1,500 UNITS ?

  • Market Systems

    In this case the quantity demanded is more responsive to the change in price. The solution goes into a great amount of detail regarding the question being asked.

  • Rules for Brainstorming and Problem Solving

    Strive for quantity. In Creative Problem Solving, we believe that with quantity, one is more likely to get quality.

  • Managerial Econ: Marginal Revenue Cost of Labor/Price Elasticity

    Problem-solving exercises: (a) Use the arc-approximation formula to calculate the price-elasticity of demand coefficient of a firm's product demand between the (quantity, price) points of (100, $20) and (300, $10).

  • The Cross-Price Elasticity of Demand

    Often an assignment or a test will ask you a follow up question such as "Are the two goods complements or substitutes?". To answer that question, you use the following rule of thumb: ?

  • assumed market structure

    Now, suppose that following the supply and demand changes in (a), a substitute good goes up in price, and your costs of production decrease. What new decisions will you make regarding production levels and pricing for your Widget facility?

  • Price Elasticity of Demand

    (Please copy and paste this template into a Word document and state your answers below each question-omit this top section in your submission to lower similarity score).)

  • Computing material price variance, etc

    516369 Computing material price variance, etc The cost accountant for Blue Pharmaceuticals has informed you that the company's materials quantity variance for the drug Allegro was exactly equal to its materials price variance for the year.

  • Presence of secondary market

    : If the preset ticket price is $45, would we expect to see a secondary market for tickets?

View More Related Solutions