How To Derive Marginal Revenue Function From Demand Function
This situation still follows the rule that the marginal revenue curve is twice as steep as the demand curve since twice a slope of zero is still a slope of zero.
How to derive marginal revenue function from demand function. The demand function defines the price that customers will pay. For more information and a complete listing of videos and online articles by. The demand function the first step in the process of coming up with a marginal revenue derivative is to estimate the demand function. In this case marginal revenue is equal to price as opposed to being strictly less than price and as a result the marginal revenue curve is the same as the demand curve.
The total revenue function is based on the demand function.
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