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24. Jacinda’s company is a monopoly that faces inverse demand P = μ- ​d​Q, where μ...

24. Jacinda’s company is a monopoly that faces inverse demand P = μ- ​d​Q, where μ and ​d​ are positive numbers. The monopolist’s marginal revenue function is
a . M R = μ - ​d Q​ .
b. MR=μ–Q.

c. MR=μ–2​dQ​ . d. MR=μ/Q–​d.​

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Answer #1

To find marginal revenue function, we have to first find total revenue function, which is a product of price and quantity i.e. P*Q.

We will multiply the above equation by Q, to find total revenue function

We will differentiate the above equation with respect to Q to find marginal revenue function,

Hence, the correct answer is Option C i.e. .

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