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Applied Calculus for the Manageria...

10th Edition
Soo T. Tan
ISBN: 9781285464640

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BuyFindarrow_forward

Applied Calculus for the Manageria...

10th Edition
Soo T. Tan
ISBN: 9781285464640
Textbook Problem

Demand for Smartphones The marketing department of Telecon has determined that the demand for their smartphones obeys the relationship

p = −0.02x + 600 (0 ≤ x ≤ 30,000)

where p denotes the phone’s unit price (in dollars) and x denotes the quantity demanded.

  1. a. Find the revenue function R.
  2. b. Find the marginal revenue function R′.
  3. c. Compute R′( 10,000), and interpret your result.

(a)

To determine
The revenue function R.

Explanation

Given information:

The demand for the smart phones by the marketing department of telecom is expressed by the relationship,

p=0.02x+600 (0x30,000) (1)

Where,

p denotes the phone’s unit price and x denotes the quantity demanded

(b)

To determine
The marginal revenue function R .

(c)

To determine
The value of marginal revenue function when x=10,000 .

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