... first solve for price as a function of quantity: PNY = 240 - 4QNY and P LA = 200 - 2Q LA . Since the marginal revenue curve has twice the slope of the demand curve, the marginal revenue ... revenue is given by the slope of the total revenue curve: MR = 7,500 - 2,000P. Equating marginal revenue and marginal cost to maximize profits: 7,500 - 2,000P = 0, or P = $3.75. Total revenue ... II, III, and IV. Chapter 11: Pricing with Market Power 173 Using the fact that the marginal revenue curves have twice the slope of a linear demand curve, we have: MRA = 650 - 5QA and...