Finding the marginal revenue related to derivatives

[thelazyman]

Dont understand this question.

q= D(p) = 1250 - 50p is a demand function, where p denotes price per unit and q denotes quantity demanded

(a) Find the marginal reveune

(b) Find the marginal revenue when q = 10

They say to rewrite the given demand equation as 25 - 0.2q, but i dont see how they get 0.2

Thank you

 

[stapel]

Dont understand this question.

Did your book/class not discuss marginal revenues...?

Eliz.

 

[skeeter]

marginal revenue is dR/dq

revenue = (number of units sold)(price)

R = qp

since q = 1250 - 50p ... p = (1250 - q)/50 = 25 - .02q

R = q(25 - .02q)

R = 25q - .02q²

so ... find dR/dq and evaluate the result when q = 10.