Question

Total revenue is in dollars and x is the number of units. Suppose that in a...

Total revenue is in dollars and x is the number of units.

Suppose that in a monopoly market, the demand function for a product is given by

p = 450 − 0.1x

where x is the number of units and p is the price in dollars.

(a) Find the total revenue from the sale of 500 units.
$  

(b) Find the marginal revenue MR at 500 units.
MR = $  

Interpret this value.

The 501st unit will lose |MR| dollars more in revenue.

The 501st unit will lose |MR| hundred dollars more in revenue.   

  The 501st unit will bring in |MR| hundred dollars more in revenue.

The 501st unit will bring in |MR| dollars more in revenue.


(c) Is more revenue expected from the 501st unit sold or from the 701st? Explain.

The 701st unit will bring in $_______ more in revenue. Thus the  ---Select--- 501st or 701st unit will bring in more revenue.

Math   Calculus   
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