What is the total revenue function if the market demand is described by P=100-0.5Q?

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Study for the University of Central Florida ECO2023 Principles of Microeconomics Final. Prepare with multiple choice questions, flashcards with helpful hints and explanations. Ace your exam!

To find the total revenue function from the market demand equation P = 100 - 0.5Q, we start by recognizing that total revenue (TR) is calculated as the product of price (P) and quantity sold (Q). In this case, total revenue can be expressed as:

TR = P * Q

Substituting the price function derived from the demand equation into this formula gives:

TR = (100 - 0.5Q) * Q

Expanding this expression will yield:

TR = 100Q - 0.5Q^2

This is consistent with the form presented in the correct answer choice. The total revenue function illustrates the relationship between quantity sold and the total revenue generated, reflecting how changes in quantity impact revenue under the given demand conditions.

This derivation helps in understanding how price affects revenue in a microeconomic context, particularly in terms of demand curves. Each component of the total revenue equation provides insight into how revenue varies as more units are produced or sold, which is fundamental to microeconomic analysis.