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Figure 9.2 A Linear Demand Curve and Its Marginal Revenue Curve
A linear demand curve has a marginal revenue curve with the same vertical intercept and twice the slope. Here, the demand curve D is given by P = 100 – 10Q. The associated marginal revenue curve is therefore MR = 100 – 20Q. If Q = 4, for example, then P = $60 and MR = $20.