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Question
If the marginal revenue function is R'(x) = 1500 – 4x – 3x2. Find the revenue function and average revenue function
Solution
Given marginal revenue function
MR = R’(x)= 1500 – 4x – 3x2
Revenue function R(x) = `int "R'"(x) "d"x + "c"`
R = `int (1500 - 4x - 3x^2) "d"x + "c"`
R = 1500x – 2x2 – x3 + c
When x = 0
R = 0
⇒ c = 0
So R = 1500x – 2x2 – x3
Average revenue function P = `"R"/x` ⇒ 1500 – 2x – x2
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