1. Using Porter's Five Forces

helpful to derive the equation of the line. For each of the three lines below, enter the equation of the line. Demand, marginal revenue, and marginal cost are essential elements of many microeconomic models, but it is not necessary to define what the line represents yet. For this problem, these are just convenient labels for the lines (linear curves). The generic equation for a line is: Y = a + bX where a is the Y axis intercept and b is the slope of the line (rise/run). For these graphs, price (P) is measured on the Y-axis and quantity (Q) is on the X-axis. a. By inspection of the graph, what is the price and quantity at which MR = MC