(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.

10th Edition

ISBN: 9781337825597

Author: Tan

Publisher: INTER CENG

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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

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Chapter 3 Solutions

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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