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Question
The average revenue function is given by AR = `25 - x/4`. Find total revenue function and marginal revenue function.
Solution
Average Revenue function
AR = `25 - x/4`
∵ AR = `("R"(x))/x`
⇒ R(x) = x(A.R.)
R(x) = `x(25 - x/4)`
⇒ R(x) = `25x - x^2/4`
Which is the total Revenue function.
Also, Marginal Revenue
MR = `("dR")/("d"x)`
= `"d"/("d"x) (25x - x^2/4)`
= `25 xx 1 - (2x)/4`
= `25 - x/2`
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