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Question
The demand function of a monopoly is given by x = 100 − 4p. Find the quantity at which the MR will be zero.
Solution
Given, x = 100 − 4p
`\implies p = (100 - x)/4`
∴ R(x) = px
= `(100x - x^2)/4`
`\implies MR = d/dx((100 - x^2)/4)`
= `(100 - 2x)/4`
∵ MR = 0
∴ x = 50
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