Total revenue is in dollars and x is the number of units. Suppose that in a monopoly market, the demand function for a product is given by p = 430 − 0.3x where x is the number of units and p is the price in dollars. (a) Find the total revenue from the sale of 500 units. $ (b) Find the marginal revenue MR at 500 units.
Total revenue is in dollars and x is the number of units. Suppose that in a monopoly market, the demand function for a product is given by p = 430 − 0.3x where x is the number of units and p is the price in dollars. (a) Find the total revenue from the sale of 500 units. $ (b) Find the marginal revenue MR at 500 units.
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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Total revenue is in dollars and x is the number of units.
Suppose that in a monopoly market, the demand function for a product is given by
p = 430 − 0.3x
where x is the number of units and p is the price in dollars.
(a) Find the total revenue from the sale of 500 units.
$
(b) Find the marginal revenue MR at 500 units.
MR = $
Interpret this value.
(c) Is more revenue expected from the 501st unit sold or from the 701st? Explain.
$
(b) Find the marginal revenue MR at 500 units.
MR = $
Interpret this value.
The 501st unit will bring in |MR| dollars more in revenue.The 501st unit will lose |MR| dollars more in revenue. The 501st unit will lose |MR| hundred dollars more in revenue.The 501st unit will bring in |MR| hundred dollars more in revenue.
(c) Is more revenue expected from the 501st unit sold or from the 701st? Explain.
The 701st unit will bring in $ more in revenue. Thus the unit will bring in more revenue.
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