How to calculate marginal revenue MR from word problem and demand function
Suppose a tee-shirt vendor with market power is now selling ten tee-shirts per hour at a price of $8. If she cuts the price to $7.50, she can sell one more tee-shirt per hour (that is, a total of eleven tee-shirts per hour). The vendor's marginal revenue for the eleventh tee-shirt is therefore...
Suppose a firm faces a demand curve given by the equation P = 12 – Q/100. Then the firm’s marginal revenue curve is given by the equation