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 , we need to find the derivative of the revenue function . 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:
To find the marginal revenue, we differentiate with respect to :
The derivative of is 6, and the derivative of is .
So, the marginal revenue function is:
Step 2: Calculate the marginal revenue at
Now, substitute into the derivative to find the marginal revenue at this production level:
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:
- What does the marginal revenue represent in terms of business operations?
- How does the marginal revenue change as production increases or decreases?
- How can we find the production level where marginal revenue is zero?
- What is the total revenue when producing 25 units?
- 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 .
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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
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