Suppose a market has the demand function Q^d=20-0.5P.At which of the following prices will total revenue be maximized? A)$10 B)$20 C)$30 D)$40

Name: Suppose a market has the demand function Q d =20-0.5P.At which of the following prices will total revenue be maximized? A)$10 B)$20 C)$30 D)$40
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Quizplus · Accepted Answer

Total revenue is maximized when marginal revenue equals zero. For a linear demand curve, this occurs at the midpoint of the demand curve. The demand curve is Q^d=20-0.5P, so the midpoint is at P=$20.

Suppose a Market Has the Demand Function Qd=20-0

Suppose a Market Has the Demand Function Q^d=20-0