Do Question B and C only.
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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Question
Do Question B and C only.
Transcribed Image Text:(a) Given the total revenue function is TR = 165x – 4x2.
(i) Find the price-demand function p(x) in terms of x.
(ii) Find the marginal revenue function.
(iii) Find the marginal revenue when x = 22. Interpret the result.
(b) If the average cost function of a good is
16
4· AC = 12x +4 +
find an expression for marginal cost MC. If the current output is 17, estimate the effect
on TC of a 4 unit decrease in x.
(c) Given the demand function P = -3Q² – 6Q + 96,
(i) find elasticity when the price is $63. Is the demand elastic, unit elastic or
inelastic? Hence, will the revenue increase or decrease if the price increases?
(ii) If the price increase by 3%, calculate the corresponding percentage increase in
demand.
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