Question

The total revenue equation of a firm is given by the equation,

TR = 20Q – 2Q²

1. Calculate TR, AR & MR. 

2. Identify the market form related to this equation

Answer 1

1. TR = 20Q – 2Q²

AR = \(\frac{TR}{Q}= \frac{20Q - 2Q^2}{Q} = 20 - 2Q\)

^{MR = \(\frac{\delta TR}{8Q}\) = \(\frac{(20Q - 2Q^2)}{Q}\) = 20 - 4Q}

2. Monopoly