Consider the following Total Revenue function R = 100 + 48Q – 4Q² | (a) Find the marginal Revenue function. (b) Give an interpretation of this function in economic terms. (c) Using differentiation, find the exact level of output, Q, at which Revenue is at a maximum.

Algebra and Trigonometry (MindTap Course List)
4th Edition
ISBN:9781305071742
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter2: Functions
Section2.4: Average Rate Of Change Of A Function
Problem 4.2E: bThe average rate of change of the linear function f(x)=3x+5 between any two points is ________.
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Consider the following Total Revenue function
R = 100 + 48Q – 4Q²
|
(a) Find the marginal Revenue function.
(b) Give an interpretation of this function in economic terms.
(c) Using differentiation, find the exact level of output, Q, at which Revenue is at a
maximum.
(d) Using another tool of differentiation, prove that the point you have found is indeed a
maximum, not a minimum.
(e) What is the maximum Revenue?
(f) Write down the value of Marginal Revenue at that maximum level of Revenue.
Transcribed Image Text:Consider the following Total Revenue function R = 100 + 48Q – 4Q² | (a) Find the marginal Revenue function. (b) Give an interpretation of this function in economic terms. (c) Using differentiation, find the exact level of output, Q, at which Revenue is at a maximum. (d) Using another tool of differentiation, prove that the point you have found is indeed a maximum, not a minimum. (e) What is the maximum Revenue? (f) Write down the value of Marginal Revenue at that maximum level of Revenue.
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