The Nike accounting firm analyzes the price-demand relationship toconclude that x thousand shoes will sell if offered for a unit price (in dollars) of p(x) = 130−0.1x. Suppose further that the total cost of production was tracked to be $530,000 up until production of the first thousand shoes, and that this cost increased linearly to $560,000 by the time of production ofthe 2000th shoe. Find the following quantities, and interpret your results(describe what these quantities represent). a) Marginal revenue when x= 100 b) Average profit when x= 500
The Nike accounting firm analyzes the
a) Marginal revenue when x= 100
b) Average profit when x= 500
Marginal revenue(MR) refers to the revenue earned by producing an extra-unit of a commodity(g). Average profit(AP) is the total profit(TP) divided by the unit of output(Y) produced.
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