Question

Assume that a demand equalon is given by q=8000−100p. Find the marginal revenue for the given production levels (values of q). (Hint Solve the demand equation for p and iuse R(q) = qp.) a. 1000 units The marginal fuveruie at 1000 units is (Simpify your answet.)

Answer 1

The marginal revenue for a production level of 1000 units is $1100.

Step-by-step explanation:

To find the marginal revenue for the given production level of 1000 units, we need to solve the demand equation for price (p). The demand equation is given as q = 8000 - 100p, where q represents the quantity demanded. Solving for p, we have:

q = 8000 - 100p

100p = 8000 - q

p = (8000 - q) / 100

Now, we can calculate the marginal revenue (MR) using the equation R(q) = qp. Substituting the values of q = 1000 and p = (8000 - 1000) / 100, we get:

MR = R(q+1) - R(q)

MR = (q+1)p - qp

MR = (1000+1)(8000 - 1000)/100 - 1000(8000 - 1000)/100

MR = 810000/100 - 700000/100

MR = $1100