Total revenue is in dollars and x is the number of units. Suppose that the total revenue function for a commodity is R(x) = 42x − 0.05x2. (a) Find R(50). $ Tell what it represents. 50 units produce this amount of revenue. The revenue decreases by about this amount when the number of units is increased from 50 to 51. The actual revenue of the 50th unit is this amount. 51 units produce this amount of revenue. The revenue increases by about this amount when the number of units is increased from 50 to 51. (b) Find the marginal revenue function. MR = (c) Find the marginal revenue (in dollars per unit) at x = 50. $ per unit Tell what it predicts about the sale of the next unit and the next 2 units. The sale of the next unit will the revenue by about $ . The sale of the next 2 units will the revenue by about $ .
Total revenue is in dollars and x is the number of units. Suppose that the total revenue function for a commodity is R(x) = 42x − 0.05x2. (a) Find R(50). $ Tell what it represents. 50 units produce this amount of revenue. The revenue decreases by about this amount when the number of units is increased from 50 to 51. The actual revenue of the 50th unit is this amount. 51 units produce this amount of revenue. The revenue increases by about this amount when the number of units is increased from 50 to 51. (b) Find the marginal revenue function. MR = (c) Find the marginal revenue (in dollars per unit) at x = 50. $ per unit Tell what it predicts about the sale of the next unit and the next 2 units. The sale of the next unit will the revenue by about $ . The sale of the next 2 units will the revenue by about $ .
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Total revenue is in dollars and x is the number of units.
Suppose that the total revenue function for a commodity is
R(x) = 42x − 0.05x2.
(a)
Find
R(50).
$
Tell what it represents.
50 units produce this amount of revenue. The revenue decreases by about this amount when the number of units is increased from 50 to 51. The actual revenue of the 50th unit is this amount. 51 units produce this amount of revenue. The revenue increases by about this amount when the number of units is increased from 50 to 51.
(b)
Find the marginal revenue function.
MR =
(c)
Find the marginal revenue (in dollars per unit) at
x = 50.
$ per unit
Tell what it predicts about the sale of the next unit and the next 2 units.
The sale of the next unit will
the revenue by about $ . The sale of the next 2 units will
the revenue by about $ .
(d)
Find
R(51) − R(50).
$
Explain what this value represents.
actual revenue from the 50th unit actual revenue from 51 units marginal revenue at x = 50 actual revenue from the 51st unit actual revenue from 50 units
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