Mathematics

Mathematics

Problem

A product’s demand relationship is p(q)=120−0.5qp(q)=120-0.5q, where pp is the price (in dollars) received per unit when qq units are sold. After a per-unit tax of 1010 dollars is imposed, the firm’s revenue becomes (p(q)−10)q(p(q)-10)q. Calculate the marginal revenue at a sales level of q=80q=80 units under the tax.

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