[1]
When revenue is 0 then there is max revenue;
And when MR = MC then there is max profit?
[2] The exam question will specifically ask for the max revenue and max profit, right?
I have confused about when to calculate the Marginal revenue?
[3] Is it true either we are calculating max revenue or max profit (as per the question says) we have to calculate Marginal Revenue by this formula MR = a - 2bQ
[4] And MR is calculated to get the UNITS where Revenue = 0 and where MR = MC?
Is this correct SIR?
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Pricing question
4y ago#1(1) Maximum revenue is then the marginal revenue is zero.
You are correct with regard to the maximum profit.
(2) It could ask for either or for both and marginal revenue is needed for both.
(3) That is true and the formula is given to you on the formula sheet.
(4) The MR is in $'s and I do not understand the rest of what you are asking.
Have you watched my free lectures on pricing?
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