1. **Monopoly Demand and Marginal Revenue**In the context of monopoly, the demand function is given as:\[ Q_D = A - Bp \]The task is to determine the appropriate expression for Marginal Revenue (MR) from the options provided. ### Options:1. **MR = P**2. **A - BQ**3. **A/B - Q/B**4. **A/B - 2Q/B**5. **A - 2BP**This exercise challenges the learner to derive the Marginal Revenue function from the linear demand equation in a monopoly setting. The correct answer involves understanding how to differentiate the total revenue function, $ TR = P \times Q $, where $ Q $ is substituted based on the demand function to find MR.

Given, Demand, QD = A - Bp The inverse demand function will be Bp= A-Q p= A-Q B Total revenue, TR…

Answered: Suppose a monopoly faces the demand: Qp…

Suppose a monopoly faces the demand: Qp = A - Bp Which of the following is the Marginal Revenue? O MR=P O A-BQ O A/B-Q/B O A/B - 2Q/B O A-2BP

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

**Monopoly Demand and Marginal Revenue**

In the context of monopoly, the demand function is given as:

\[ Q_D = A - Bp \]

The task is to determine the appropriate expression for Marginal Revenue (MR) from the options provided.

### Options:

1. **MR = P**
2. **A - BQ**
3. **A/B - Q/B**
4. **A/B - 2Q/B**
5. **A - 2BP**

This exercise challenges the learner to derive the Marginal Revenue function from the linear demand equation in a monopoly setting. The correct answer involves understanding how to differentiate the total revenue function, $ TR = P \times Q $, where $ Q $ is substituted based on the demand function to find MR.

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