Consider a perfectly competitive firm facing the following conditions: TR = 150Q and
TC = 500 + 3Q + Q².What is the firm's marginal revenue when Q = 50?

Question

Consider a perfectly competitive firm facing the following conditions: TR = 150Q and TC = 500 + 3Q + Q².What is the firm's marginal revenue when Q = 50? A)50 B)78 C)103 D)150

Quizplus · Accepted Answer

Marginal Revenue (MR) in a perfectly competitive market is equal to the price of the product, which is constant and equal to the derivative of Total Revenue (TR) with respect to quantity (Q). Given TR = 150Q, the derivative d(TR)/dQ = 150, indicating that MR is constant at 150, regardless of the quantity (Q).

Consider a Perfectly Competitive Firm Facing the Following Conditions: TR