Question
A travel agency will plan a group tour for groups of size 35 or larger. If the group contains exactly 35 people, the cost is
A travel agency will plan a group tour for groups of size 35 or larger. If the group contains exactly 35 people, the cost is $330 per person. If each person's cost is reduced by $10 for each additional person above the 35, then the revenue is given by the equation shown below, where x is the number of additional people above 35.
R(x) = (35 + x)(330 10x)
Find the marginal revenue if the group contains 40 people.
Interpret your result. The revenue will increase by $1 if the group adds the absolute value of the marginal revenue number of people.
The revenue will decrease by the absolute value of the marginal revenue in dollars if the group adds one person. The revenue will decrease by the absolute value of the marginal revenue in dollars if the group removes one person.
The revenue will decrease by $1 if the group adds the absolute value of the marginal revenue number of people.
The revenue will increase by the absolute value of the marginal revenue in dollars if the group adds one person.
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