Suppose a Firm Faces the Demand Curve Q = 4P^-2

question 8

Multiple Choice

Suppose a firm faces the demand curve Q = 4P^-2. The marginal revenue for the firm is MR(Q) = ____.

• A) Q^-0.5
• B) Q^0.5
• C) 2Q^-0.5
• D) 2Q^0.5

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Definitions:

FIFO

"First In, First Out," an inventory valuation method where goods first acquired are the first to be sold.

Current Cost

The cost that would be incurred to purchase an asset or service at the present time, contrasting historical cost.

LIFO Firm

A company that uses the Last-In, First-Out method of inventory valuation where the most recently produced items are sold first.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs from total revenue, indicating the company's profit.