Answer to Question #315472 in Economics of Enterprise for Syed

Question

TR= 75Q-4Q^2

Find AR and MR function?

At what level of output and price MR is zero?

Answer 1

$TR= 75Q- 4Q^2$

$AR= \frac{TR}{Q}= \frac{75Q- 4Q^2}{Q}$

= 75- 4Q

MR= $\frac{\delta TR}{\delta Q}= 75-8Q$

MR= 0

75-8Q= 0

Q= 9.375

P= $\frac{TR}{Q}=\frac{ 75(9.375)- 4(9.375^2)}{9.375}$

= $\frac{351.5625}{9.375}= 37.5$