Math Problem Statement

Question content area top Part 1 Suppose the revenue from producing​ (and selling) x units of a product is given by Upper R left parenthesis x right parenthesis equals 6 x minus . 01 x squared dollars. ​(a) Find the marginal revenue at a production level of 25.

Solution

To find the marginal revenue at a production level of x=25x = 25, we need to find the derivative of the revenue function R(x)=6x0.01x2R(x) = 6x - 0.01x^2. The derivative represents the rate of change of revenue with respect to the number of units produced, which is the marginal revenue.

Step 1: Differentiate the revenue function

The revenue function is:

R(x)=6x0.01x2R(x) = 6x - 0.01x^2

To find the marginal revenue, we differentiate R(x)R(x) with respect to xx:

ddxR(x)=ddx(6x0.01x2)\frac{d}{dx} R(x) = \frac{d}{dx} \left( 6x - 0.01x^2 \right)

The derivative of 6x6x is 6, and the derivative of 0.01x2-0.01x^2 is 0.02x-0.02x.

So, the marginal revenue function is:

R(x)=60.02xR'(x) = 6 - 0.02x

Step 2: Calculate the marginal revenue at x=25x = 25

Now, substitute x=25x = 25 into the derivative to find the marginal revenue at this production level:

R(25)=60.02(25)R'(25) = 6 - 0.02(25) R(25)=60.5R'(25) = 6 - 0.5 R(25)=5.5R'(25) = 5.5

Thus, the marginal revenue at a production level of 25 units is $5.50.


Would you like more details or have any questions on this? Here are some additional questions that might interest you:

  1. What does the marginal revenue represent in terms of business operations?
  2. How does the marginal revenue change as production increases or decreases?
  3. How can we find the production level where marginal revenue is zero?
  4. What is the total revenue when producing 25 units?
  5. How would the revenue function change if the production cost per unit increased?

Tip: To find the break-even point (where revenue equals cost), you can set the revenue function equal to the cost function and solve for xx.

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Math Problem Analysis

Mathematical Concepts

Differentiation
Marginal Revenue
Quadratic Functions

Formulas

R(x) = 6x - 0.01x^2
R'(x) = 6 - 0.02x

Theorems

Derivative as rate of change

Suitable Grade Level

Grades 11-12