Math Problem Statement

Determine the total revenue (TR) function if the marginal revenue (MR) function is given as MR = f'(Q) = 5 - 3Q.

Solution

From the image, the problem asks to determine the total revenue (TR) function given the marginal revenue (MR) function:

MR=f(Q)=53QMR = f'(Q) = 5 - 3Q

To find the total revenue function TR(Q)TR(Q), we integrate the marginal revenue function with respect to QQ:

TR(Q)=MRdQTR(Q) = \int MR \, dQ

Steps:

  1. Integrate MR=53QMR = 5 - 3Q: TR(Q)=(53Q)dQ=5Q32Q2+CTR(Q) = \int (5 - 3Q) \, dQ = 5Q - \frac{3}{2}Q^2 + C

  2. The constant CC represents the initial revenue when Q=0Q = 0. If no initial condition is provided, CC remains as an unknown constant.

Final Answer:

TR(Q)=5Q32Q2+CTR(Q) = 5Q - \frac{3}{2}Q^2 + C

Let me know if you want further explanation or calculations!


Here are some follow-up questions to expand your understanding:

  1. What is the economic meaning of the constant CC in the total revenue function?
  2. How would the total revenue function change if the marginal revenue had a quadratic term?
  3. How do marginal revenue and total revenue relate graphically?
  4. How do we determine the quantity QQ that maximizes total revenue?
  5. What happens to MRMR and TRTR when MR=0MR = 0?

Tip: The integration process is essential in transitioning from marginal functions (rates of change) to total functions. Always remember to add the constant of integration!

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Math Problem Analysis

Mathematical Concepts

Integration
Revenue Analysis

Formulas

MR = d(TR)/dQ
TR(Q) = ∫MR dQ

Theorems

Fundamental Theorem of Calculus

Suitable Grade Level

Undergraduate Economics or Mathematics