Answer to Question #166074 in Microeconomics for Rachel

Question

Given the following demand function P=3/Q+Q-5

Calculate:

Total Revenue l

Marginal Revenue

Average Revenue

Answer 1

1. $TR=P×Q$

$TR=(\frac{3{}}{Q}+Q⁻⁵)Q$

Total Revenue (TR) = 3+$Q⁻⁴$

Marginal Revenue (MR)$=TR'$ = $-4Q⁻⁵$

Average Revenue (AR) =$\frac{TR{}}{Q}$

AR = $\frac{3+Q^{-4}}{Q}$

AR = $\frac{3}{Q}+Q^{-5}$