Advertisements
Advertisements
Question
Find the marginal revenue if the average revenue is 45 and elasticity of demand is 5.
Solution
Given, average revenue (RA) = 45 and
elasticity of demand (η) = 5
Rm = RA `(1 - 1/η)`
∴ Rm = `45 (1 - 1/5) = 45(4/5)`
∴ Rm = 36
∴ Marginal revenue (Rm) = 36
RELATED QUESTIONS
Find the elasticity of demand, if the marginal revenue is 50 and price is Rs 75.
Find the price, if the marginal revenue is 28 and elasticity of demand is 3.
If the demand function is D = `((p + 6)/(p − 3))`, find the elasticity of demand at p = 4.
If the demand function is D = 50 – 3p – p2. Find the elasticity of demand at p = 5 comment on the result
If the demand function is D = 50 – 3p – p2. Find the elasticity of demand at p = 2 comment on the result
A manufacturing company produces x items at a total cost of ₹ 40 + 2x. Their price is given as p = 120 – x. Find the value of x for which profit is increasing.
Find MPC, MPS, APC and APS, if the expenditure Ec of a person with income I is given as Ec = (0.0003) I2 + (0.075) I ; When I = 1000.
Fill in the blank:
A road of 108 m length is bent to form a rectangle. If the area of the rectangle is maximum, then its dimensions are _______.
If the marginal revenue is 28 and elasticity of demand is 3, then the price is ______.
If the elasticity of demand η = 1, then demand is ______.
If 0 < η < 1, then the demand is ______.
If the average revenue is 45 and elasticity of demand is 5, then marginal revenue is ______.
State whether the following statement is True or False:
If the marginal revenue is 50 and the price is ₹ 75, then elasticity of demand is 4
The manufacturing company produces x items at the total cost of ₹ 180 + 4x. The demand function for this product is P = (240 − 𝑥). Find x for which profit is increasing
A manufacturing company produces x items at a total cost of ₹ 40 + 2x. Their price per item is given as p = 120 – x. Find the value of x for which revenue is increasing
Solution: Total cost C = 40 + 2x and Price p = 120 – x
Revenue R = `square`
Differentiating w.r.t. x,
∴ `("dR")/("d"x) = square`
Since Revenue is increasing,
∴ `("dR")/("d"x)` > 0
∴ Revenue is increasing for `square`
A manufacturing company produces x items at a total cost of ₹ 40 + 2x. Their price per item is given as p = 120 – x. Find the value of x for which profit is increasing
Solution: Total cost C = 40 + 2x and Price p = 120 − x
Profit π = R – C
∴ π = `square`
Differentiating w.r.t. x,
`("d"pi)/("d"x)` = `square`
Since Profit is increasing,
`("d"pi)/("d"x)` > 0
∴ Profit is increasing for `square`
A manufacturing company produces x items at a total cost of ₹ 40 + 2x. Their price per item is given as p = 120 – x. Find the value of x for which elasticity of demand for price ₹ 80.
Solution: Total cost C = 40 + 2x and Price p = 120 – x
p = 120 – x
∴ x = 120 – p
Differentiating w.r.t. p,
`("d"x)/("dp")` = `square`
∴ Elasticity of demand is given by η = `- "P"/x*("d"x)/("dp")`
∴ η = `square`
When p = 80, then elasticity of demand η = `square`
