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Shell marginal revenue as a function of q

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Reference no: EM132170463

Suppose Shell purchased every gas company in the world and set their prices. Then, it would have a control of the gas market with no other competition. Thus Shell becomes a monopolist in providing gas. The market demand curve faced by Shell is P = -Q + 40, and Shell's cost is given by TC=Q2 + 140, and the marginal cost is given by MC=2Q. 

  1. What is Shell's marginal revenue as a function of Q?
  2. MR = -1 + 40/Q
  3. MR =-Q+ 40Q
  4. MR = -2Q + 40
  5. MR = -2Q + 40Q

Reference no: EM132170463

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