Question
A linear revenue function is R = 80x. (Assume R is measured in dollars.) (a) What is the slope m? m= (b) What is
A linear revenue function is R = 80x. (Assume R is measured in dollars.) (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. 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. Each additional unit sold yields this many dollars in revenue. (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? $
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