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The demand function of a monopolist is p...

The demand function of a monopolist is p = 300 - 15 x .Find the price at which the mar-ginal revenue vanishes.

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To solve the problem, we need to find the price at which the marginal revenue (MR) of the monopolist vanishes. We start with the given demand function and follow these steps: ### Step 1: Write down the demand function The demand function given is: \[ P = 300 - 15x \] ### Step 2: Calculate Total Revenue (TR) Total Revenue (TR) is calculated as the product of price (P) and quantity (x): \[ TR = P \cdot x = (300 - 15x) \cdot x \] \[ TR = 300x - 15x^2 \] ### Step 3: Find Marginal Revenue (MR) Marginal Revenue (MR) is the derivative of Total Revenue (TR) with respect to quantity (x): \[ MR = \frac{d(TR)}{dx} = \frac{d(300x - 15x^2)}{dx} \] Differentiating each term: - The derivative of \( 300x \) is \( 300 \). - The derivative of \( -15x^2 \) is \( -30x \). So, we have: \[ MR = 300 - 30x \] ### Step 4: Set Marginal Revenue to zero To find the quantity (x) at which MR vanishes, we set MR equal to zero: \[ 300 - 30x = 0 \] ### Step 5: Solve for x Rearranging the equation: \[ 30x = 300 \] \[ x = \frac{300}{30} \] \[ x = 10 \] ### Step 6: Find the price at x = 10 Now, we substitute \( x = 10 \) back into the demand function to find the price (P): \[ P = 300 - 15(10) \] \[ P = 300 - 150 \] \[ P = 150 \] ### Final Answer The price at which the marginal revenue vanishes is: \[ \boxed{150} \]
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