Your college newspaper, The Collegiate Investigator, sells for 90¢ per copy. The cost of producing x copies of an edition is given byC(x)= 10 + 0.10x + 0.001x² dollars.(a) Calculate the marginal revenue R'(x) and profit P'(x) functions. HINT [See Example 2.]R'(x)%3DP'(x)(b) Compute the revenue and profit, and also the marginal revenue and profit, if you have produced and sold 500 copies of the latest edition.revenue2$profit2$marginal revenue$per additional copymarginal profit$per additional copyInterpret the results.The approximate lossfrom the sale of the 501st copy is $(c) For which value of x is the marginal profit zero?X =copiesInterpret your answer.The graph of the profit function is a parabola with a vertex at x =, so the profit is at a maximum when you produce and sellcopies.

C (x) = 10 + 0.10x +0.001x2 Price = 90 cents Total Revenue (TR) = Price * Quantity TR = 0.90 x

Your college newspaper, The Collegiate Investigator, sells for 90¢ per copy. The cost of producing x copies of an edition is given by C(x) = 10 + 0.10x + 0.001x² dollars. (a) Calculate the marginal revenue R'(x) and profit P'(x) functions. HINT [See Example 2.] R'(x) = P'(x) = (b) Compute the revenue and profit, and also the marginal revenue and profit, if you have produced and sold 500 copies of the latest edition. revenue profit marginal revenue 24 per additional copy marginal profit per additional copy Interpret the results. The approximate loss Ov from the sale of the 501st copy is $ (c) For which value of x is the marginal profit zero? copies

Your college newspaper, The Collegiate Investigator, sells for 90¢ per copy. The cost of producing x copies of an edition is given by C(x) = 10 + 0.10x + 0.001x² dollars. (a) Calculate the marginal revenue R'(x) and profit P'(x) functions. HINT [See Example 2.] R'(x) = P'(x) = (b) Compute the revenue and profit, and also the marginal revenue and profit, if you have produced and sold 500 copies of the latest edition. revenue profit marginal revenue 24 per additional copy marginal profit per additional copy Interpret the results. The approximate loss Ov from the sale of the 501st copy is $ (c) For which value of x is the marginal profit zero? copies

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

Chapter11: Price And Output Determination: Monopoly And Dominant Firms

Section: Chapter Questions

Problem 3E

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