Marginal Revenue

Example

Zoe's lemonade stand satisfies a demand characterized by: $$ P = 10 - 2 Q $$

Her revenue is $$ R \left( Q \right) = PQ = \left( 10 - 2 Q \right) Q = 10 Q - 2 Q^2 $$

The marginal revenue is the derivative of the revenue `R \left( Q \right)`: $$ MR \left( Q \right) = \frac{d R \left( Q \right)}{d Q} = 10 - 2 \times 2 Q = 10 - 4 Q $$

Question