To calculate telescope magnification, use the formula M = F/f, where F is the focal length of the objective lens and f is the focal length of the eyepiece. The focal length of a multi-lens eyepiece can be determined by focusing sunlight onto a piece of paper and measuring the distance at which the image is smallest. In the discussed scenario, a telescope with a 500mm objective and a 10mm eyepiece yields a magnification of 50x. It's important to note that higher magnification must be complemented by adequate resolution for effective viewing. Understanding these principles is essential for optimizing telescope performance.