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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. |
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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. |
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