A linear revenue function is R = 86x. (Assume R is measured in dollars.) (a) What is the slope m? m = Let C(x) = 7x + 550 and R(x) = 28x. (a) Write the profit function P(x). P(x) = (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 decreases 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 increases 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? $ (b) What is the slope m of the profit function? m = (c) What is the marginal profit MP? MP = (d) Interpret the marginal profit. ○ Each additional unit sold increases the profit by this much. ○ This is the smallest number of units that can be sold in order to make a profit. ○ Each additional unit sold decreases the profit by this much. The profit is maximized when this many units are sold. A linear revenue function is R = 38.29x. (a) What is the slope m? m = (b) What is the marginal revenue MR? MR = What does the marginal revenue mean? ◇ If the number of units sold is increased by this amount, the revenue increases by $1. O Each additional unit sold yields this many dollars in revenue. ◇ 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 46 are currently being sold? $ What is the revenue received from selling one more item if 93 are being sold? $
A linear revenue function is R = 86x. (Assume R is measured in dollars.) (a) What is the slope m? m = Let C(x) = 7x + 550 and R(x) = 28x. (a) Write the profit function P(x). P(x) = (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 decreases 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 increases 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? $ (b) What is the slope m of the profit function? m = (c) What is the marginal profit MP? MP = (d) Interpret the marginal profit. ○ Each additional unit sold increases the profit by this much. ○ This is the smallest number of units that can be sold in order to make a profit. ○ Each additional unit sold decreases the profit by this much. The profit is maximized when this many units are sold. A linear revenue function is R = 38.29x. (a) What is the slope m? m = (b) What is the marginal revenue MR? MR = What does the marginal revenue mean? ◇ If the number of units sold is increased by this amount, the revenue increases by $1. O Each additional unit sold yields this many dollars in revenue. ◇ 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 46 are currently being sold? $ What is the revenue received from selling one more item if 93 are being sold? $
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:A linear revenue function is R = 86x. (Assume R is measured in dollars.)
(a) What is the slope m?
m =
Let C(x) = 7x + 550 and R(x) = 28x.
(a) Write the profit function P(x).
P(x) =
(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 decreases 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 increases 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?
$
(b) What is the slope m of the profit function?
m =
(c) What is the marginal profit MP?
MP =
(d) Interpret the marginal profit.
○ Each additional unit sold increases the profit by this much.
○ This is the smallest number of units that can be sold in order to make a profit.
○ Each additional unit sold decreases the profit by this much.
The profit is maximized when this many units are sold.
A linear revenue function is R = 38.29x.
(a) What is the slope m?
m =
(b) What is the marginal revenue MR?
MR =
What does the marginal revenue mean?
◇ If the number of units sold is increased by this amount, the revenue increases by $1.
O Each additional unit sold yields this many dollars in revenue.
◇ 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 46 are currently being sold?
$
What is the revenue received from selling one more item if 93 are being sold?
$
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