For a monopoly firm, MR = 50 -5q. At what output level is the TR maximum?

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Solution

The correct option is B
10

TR is maximum at the output level where the MR is zero.

$50 - 5 q = 0 5 q = 50 q = 10$

TR is maximized at an output level of 10.

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For a monopoly firm, MR = 50 -5q. At what output level is the TR maximum?

The correct option is B 10 TR is maximum at the output level where the MR is zero. 50−5q=05q=50q=10 TR is maximized at an output level of 10.

The correct option is B
10

TR is maximum at the output level where the MR is zero.

$50 - 5 q = 0 5 q = 50 q = 10$

TR is maximized at an output level of 10.