Question

A linear revenue function is R = 70x. (Assume R is measured in dollars.) (a) What is the slope m? m = (b) What is the marginal revenue MR ? MR = What does the marginal revenue mean? Each additional unit sold yields this many dollars in revenue. If the number of units sold is increased by this amount, the revenue increases by $1. Each additional unit sold decreases the revenue by this many dollars. If the number of units sold is increased by this amount, the revenue decreases by $1. (c) What is the revenue received from selling one more item if 50 are currently being sold? $ What is the revenue received from selling one more item if 100 are being sold? $

Answer 1

Answer:

Follows are the answer to the given points.

Step-by-step explanation:

Given:

$\bold{\to R= 70x }$

In point a:

The Formula for slope:

$\to R= mx \ \ \ \ \ \ \ \ \ \ \ \ _{where} \ \bold {m= slope}$

$\to R= 70 x$

slope m = 70

In point b:

question (i):

$\to \bar{MR}= \frac{d}{dx} R$

           $= \frac{d}{dx} 70 x\\\\= 70$

marginal revenue $\bar{MR}$= 70

question (ii):

Marginal revenue means "Each additional unit sold decreases the revenue by this many dollars".

In point c:

In the question the revenue is fixed so, its revenue recived= 70 in both 50  and 100 sold.