Follow-Up Question Regarding Solving for Price and Quantity

Not what you're looking for? Search our solutions OR ask your own Custom question.

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

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?

© BrainMass Inc. brainmass.com December 24, 2021, 5:06 pm ad1c9bdddf
https://brainmass.com/economics/microeconomics/followup-question-regarding-solving-price-quantity-28584

Solution Summary

The solution assists with solving the price and quantity.

$2.49