Revenue and Marginal Revenue Calculation.
Please review this video:
- https://www.youtube.com/watch?v=YprjxuGo4O0 (4.32 Minutes)
After reviewing the video, attend the class and be prepared to demonstrate:
- How (mathematically) Total Revenue function is constructed, given the firm’s demand function.
- Once total revenue function is determined, how to derive marginal revenue function of the firm (using first derivative of total revenue function).
- The rule to maximize total revenue
- How to calculate the quantity/price combination that maximizes total revenue.
- Why total revenue starts declining after a specific point.