1, the total income of manufacturers in the monopoly market tr = p (q) * q.

2. marginal revenue MR = dTR/dQ? = P(Q) * (1- 1/ed), where ed is demand elasticity.

Expand the flexibility of data demand

Demand elasticity refers to the reaction degree of the relative change of commodity demand to the relative change of commodity price in a certain period.

General formula of circular elasticity

Arc elasticity is the reaction degree of demand change between two points on the commodity demand curve to price change. Simply put, it represents the elasticity between two points on the demand curve.

Suppose that the two points on the consumer's demand curve for a commodity are A and B respectively, and the combination of its price and purchase amount is

(P 1Q 1) and (P2Q2), so you can get DP and DQ immediately, but when considering the percentage change of price and demand, the results are different whether you choose P 1, Q 1 or P2 and Q2. In order to solve this problem, economists have adopted a flexible but very effective scheme, that is, taking the midpoint of AB as the representative, so that the calculated reference value will not change whether it moves along the upper left or lower right of the curve.

References:

Demand elasticity Baidu Encyclopedia