Follow-Up Question Regarding Solving for Price and Quantity
Not what you're looking for?
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
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.