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Question
The demand for a certain product is represented by the equation p = 500 + 25x - `(x^2)/(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.
Solution
The demand function for a certain product is represented as:
p = 500 + 25x - `(x^2)/(3)` , p being price per unit
If R be the total revenue for x units, then
R = p. x = 500x + 25x2 - `(x^3)/(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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