Given the demand function QX = 5,000 – 250PX +120PY +.04I where PY = $50.00 and I = $60,000, at whatquantity of good X will marginal revenue equal zero?A) 2144B) 3420C) 5500D) 6700E) 7244
Question
Given the demand function QX = 5,000 – 250PX +120PY +.04I where PY = 60,000, at whatquantity of good X will marginal revenue equal zero?A) 2144B) 3420C) 5500D) 6700E) 7244
Solution
The question is asking for the quantity of good X at which marginal revenue equals zero. However, the information provided is not sufficient to answer this question.
The demand function QX = 5,000 – 250PX +120PY +.04I is given, where PY is the price of good Y, I is income, and PX is the price of good X. However, the price of good X (PX) is not provided.
In order to find the quantity at which marginal revenue equals zero, we would need to first derive the marginal revenue function from the demand function, and then set this equal to zero and solve for QX.
However, without the price of good X, we cannot complete these steps. Therefore, the question cannot be answered with the information provided.
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