(a) Explanation Given information: The monthly revenue of William commuter air service is R ( x ) = 8000 x − 100 x 2 . Where, x is the price charged per passenger in dollars. Formula used: The marginal revenue function is, R ′ ( x ) = d d x R ( x ) Where, R ( x ) is the revenue function. R ′ ( x ) is the marginal revenue function. x is the number of production units. Calculation: The marginal revenue function is calculated as, R ′ ( x ) = d d x R ( x ) Substitute 8000 (b) To determine The value of R ′ ( 39 ) , R ′ ( 40 ) and R ′ ( 41 ) . (c) To determine On the basis of part (a) the charges of airline in order to maximize the revenue.

Applied Calculus for the Managerial, Life, and Social Sciences (MindTap Course List)

10th Edition

ISBN: 9781305657861

Author: Soo T. Tan

Publisher: Cengage Learning

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Question

Chapter 3.4, Problem 9E

(a)

To determine

The marginal revenue function R′ .

(b)

To determine

The value of R′(39) , R′(40) and R′(41) .

(c)

To determine

On the basis of part (a) the charges of airline in order to maximize the revenue.

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Chapter 3.4, Problem 8E

Chapter 3.4, Problem 10E

Chapter 3 Solutions

Applied Calculus for the Managerial, Life, and Social Sciences (MindTap Course List)

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The marginal revenue function R ′ .

Solution Summary: The author explains the marginal revenue function, Rprime, and the number of production units.

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The marginal revenue function R′ .

The value of R′(39) , R′(40) and R′(41) .

On the basis of part (a) the charges of airline in order to maximize the revenue.

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Chapter 3 Solutions