Answer:
MR = –P + 10,000
Explanation:
Qd = (–1/2)P + 10,000 ................................................................ (1)
Total Revenue = TR = P.Qd = P[(–1/2)P + 10,000]
TR = P[(-1/2)P + 10,000)] = (–1/2)P^2 + 10,000P .................. (2)
To obtain MR, equation 2 is differentiated with respect P as follows:
MR = TR' = –P + 10,000
Therefore, the best equation to represent the firm's marginal revenue (MR) is MR = –P + 10,000.
