
Concept explainers
Marginal revenue. Solano Carriers finds that its monthly revenue, in dollars, from the sale of x carry-on suitcases is
Currently Solano is selling 26 carry-on suitcases monthly.
a. What is the current monthly revenue?
b. How much would revenue increase if sales increased from 26 to 28 suitcases?
c. What is the marginal revenue when 26 suitcases are sold? d. Use the answers from parts (a)-(c) to estimate the revenue resulting from selling 27 suitcases per month.

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