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Question
Find the revenue function and the demand function if the marginal revenue for x units is MR = 10 + 3x – x2
Solution
The marginal revenue function
MR = 10 + 3x – x2
The Revenue function
R = `int ("MR") "d"x`
= `int (10 + 3x - x^2) "d"x`
R = `[10x + 3(x^2/2) - (x^3/3)] + "k"`
When x = 0
R = 0
⇒ k = 0
∴ R = `10x + (3x^2)/2 - x^3/3`
⇒ px = `10x + (3x^2)/2 - x^3/3`
⇒ p = `(10x + (3x^2)/2 - x^3/3)/x`
∴∴ The demand function p = `10 + (3x^2)/2 - x^2/3`
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