Compute total revenue and marginal revenue and then answer three questions about price and marginal revenue.

**Instructions:** Enter your responses as a whole number. If you are entering any negative numbers be sure to include a negative sign (−) in front of those numbers.


At what price does MR = 0?

$ 

At what price is MR < 0?

at prices less than $ 

At what price is MR < price?

 (Click to select)  at all prices  at prices less than $26  at prices less than $24  at prices less than $20  at prices less than $18  it cannot be determined. 

To compute the total revenue (TR) and marginal revenue (MR), we need more information, typically in the form of a demand function or a table of price and quantity sold. Without specific details, I can't directly calculate these values.

However, based on your questions about marginal revenue (MR), I can explain how to determine answers under common economic models:

1. **At what price does MR = 0?**
    - Typically, marginal revenue (MR) equals 0 at the price where total revenue (TR) is maximized. This is usually halfway along the demand curve in linear models.

2. **At what price is MR < 0?**
    - MR becomes negative when prices are set too low and increasing output reduces total revenue. This usually happens beyond the point where TR is maximized (i.e., after MR = 0).

3. **At what price is MR < price?**
    - In typical monopolistic or imperfect competition models, MR < price at prices lower than a critical point where marginal revenue and price diverge. This often occurs as the firm reduces the price to sell more units, but MR falls below price.

Please provide a demand function or more data (price, quantity sold), so I can calculate the exact prices for these conditions.

Would you like detailed information on the marginal revenue concept, or assistance in calculating these values with data?

Here are 5 follow-up questions:
1. Do you have a demand function or table of values?
2. Would you like me to explain how to derive total revenue?
3. Do you need clarification on why MR = 0 maximizes TR?
4. How does marginal revenue affect pricing strategy in a monopoly?
5. Are you familiar with the concept of elasticity in relation to MR?

**Tip:** Marginal revenue is always less than price in monopoly due to the downward sloping demand curve.

Compute total revenue and marginal revenue and then answer three questions about price and marginal revenue. At what price does MR = 0? At what price is MR < 0? At what price is MR < price?

Learn how to compute total revenue and marginal revenue to answer key pricing questions. This problem explains concepts like marginal revenue (MR = 0) and when MR is less than price or negative, often used in revenue maximization models. Suitable for college-level economics students.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation