1.

The demand for a certain product is represented by the equation p = 500 + 25x - (x2/3) in rupees, where x is the number of units and p is the price per unit. Find: (i) Marginal revenue function. (ii) The marginal revenue when 10 units are sold.

Answer»

The demand function for a certain product is represented as: , 

p = 500 + 25x - (x2/3), p being price per unit 

If R be the total revenue for x units, then 

R = p.x = 500x + 25x2 - (x3/3)

The Marginal Revenue (MR) is given as: 

MR = d(R)/dx = 500 + 50x - x2

Marginal Revenue when 10 units are sold i.e., put x = 10 

(MR)10 = 500 + 50(10) – (10)2 = 500 + 500 – 100 = 900.



Discussion

No Comment Found

Related InterviewSolutions