Market Power and Monopoly - End of Chapter Problem
In a small college town, the demand for delivery pizza is given by $Q^D = 800 - 40P$, where $Q^D$ measures the number of pizzas demanded each week.
a. Use the given demand function to derive the associated marginal revenue function. (In other words, express marginal revenue as a function of Q. Leave the slope in fractional form.)
$MR = $
b. Calculate marginal revenue when Q equals 96 and when Q equals 480. Round to the nearest unit if necessary.
The MR at a quantity of 96 is equal to 19.
The MR at a quantity of 480 is equal to -5.
Thus, MR is positive when quantity is relatively - and negative when quantity is relatively -.
c. At what quantity does $MR = 0$?