Consider a monopolist facing a linear (inverse) demand curve ...

[imanialler]

Consider a monopolist facing a linear (inverse) demand curve given by:
 
  p = a - bQ
  Show with calculus that the marginal revenue in fact has the same price-axis intercept but twice the slope as the inverse demand curve above.

Question 2

A an example of a game in which a leader moves first, and then the other rivals follow is a ________ game.
 
  A) Stackelberg model
  B) Cournot model
  C) finite move
  D) tit-for-tat

[Brummell1998]

Answer to Question 1

Total Revenue = (a - bQ)Q. MR = dTR/dQ = a - 2bQ.

Answer to Question 2

A

[imanialler]

Thanks for the timely response, appreciate it

[scottmt]

Gracias!