The price-demand equation and the cost function for the production of table saws are given, respectively, by x 12,000 - 40p and C(x) = 98,000 + 70x, where x is the number of saws that can be sold at a price of Sp per saw and C(x) is the total cost (in dollars) of producing x saws. Complete parts (A) through (H) below. (A) Express the price p as a function of the demand x. (x-12000) The price function is p= -40 (B) Find the marginal cost. The marginal cost is 70 (C) Find the revenue function. (x-12000) The revenue function is R(x) = -40 (D) Find the marginal revenue. (12000-x) The marginal revenue is 40 (E) Find R'(1.500) and R'(4.500) and interpret these quantities. Find and interpret R' (1.500). Select the correct choice below and fill in the answer boxes within your choice. (Simplify your answers) A. R'(1.500) = 287 5 at a revenue of S per saw, saw production is increasing at the rate of per dollar.
The price-demand equation and the cost function for the production of table saws are given, respectively, by x 12,000 - 40p and C(x) = 98,000 + 70x, where x is the number of saws that can be sold at a price of Sp per saw and C(x) is the total cost (in dollars) of producing x saws. Complete parts (A) through (H) below. (A) Express the price p as a function of the demand x. (x-12000) The price function is p= -40 (B) Find the marginal cost. The marginal cost is 70 (C) Find the revenue function. (x-12000) The revenue function is R(x) = -40 (D) Find the marginal revenue. (12000-x) The marginal revenue is 40 (E) Find R'(1.500) and R'(4.500) and interpret these quantities. Find and interpret R' (1.500). Select the correct choice below and fill in the answer boxes within your choice. (Simplify your answers) A. R'(1.500) = 287 5 at a revenue of S per saw, saw production is increasing at the rate of per dollar.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter9: Applications Of Cost Theory
Section: Chapter Questions
Problem 3E
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