The marginal revenue of a firm is given by MR = 50 – Q, where Q is the quantity sold. What is the revenue when the firm sells 10 units of the product?

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Detailed Solution

The marginal revenue (MR) of the firm is given by:

MR = 50 - Q

where Q is the quantity sold. This equation gives us the additional revenue generated by selling one more unit of the product. To find the price of the product, we need to invert this equation to solve for Q:

Q = 50 - MR

Substituting Q = 10 into this equation, we get:

10 = 50 - MR

Solving for MR, we get:

MR = 40

This means that when the firm sells 10 units of the product, the marginal revenue is Rs. 40. To find the total revenue generated by selling 10 units, we need to multiply this marginal revenue by the quantity sold:

Total revenue = Price x Quantity
Total revenue = MR x Quantity
Total revenue = Rs. 40 x 10
Total revenue = Rs. 400

Therefore, the revenue generated by the firm when it sells 10 units of the product is Rs. 400.

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