Question

20. Given the total revenue function          TR = 50Q - 0.5 Q²

and the total cost function                 TC = 2000 + 200Q - 0.2Q² + 0.001Q³ 

Find the marginal revenue and the marginal cost functions.

Answer 1

The marginal revenue and the marginal cost functions are:

MR = TR'(Q) = 50 - Q,

$MC = TC'(Q) = 200 - 0.4Q + 0.003Q^2.$