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Consumer & Producer Surplus · Question 20 of 70

Question 20

MediumOriginal question

Assertion (A): If MR=50−4xMR = 50 - 4x, the demand function is p=50−2xp = 50 - 2x.

Reason (R): Revenue is price times quantity, so p=R(x)xp = \frac{R(x)}{x}.

Options for question 20

Show the answer and explanation
CorrectNot quiteAnswer A

Correct answer: A

Explanation

  1. R(x)=50x−2x2R(x) = 50x - 2x^{2}, so p=R(x)x=50−2xp = \frac{R(x)}{x} = 50 - 2x. A is true.

  2. R is the step that turns revenue into price, so it explains A.

Concept
From revenue to price
Typical time
90 s
Your time
—
The rule this testsRevenue and demand from marginal revenue
Practise this chapter →

Ten questions from Consumer & Producer Surplus, at your own pace.

Practise this chapter →

Ten questions from Consumer & Producer Surplus, at your own pace.