Question
Suppose that a wholesaler expects that his monthly revenue, in dollars, for an electronic game will be R ( x ) = 200 x 0.14
Suppose that a wholesaler expects that his monthly revenue, in dollars, for an electronic game will be
R(x) = 200x 0.14x2,
0 x 800
where x is the number of units sold. Find his marginal revenue and interpret it when the quantity sold is the following.
(a)
x = 700
$ Interpret the marginal revenue.
The sale of the 701st unit results in a loss of this amount.
\The sale of the 700th unit results in a loss of revenue of this amount.
This is the additional revenue from the 700th unit.
This is the additional revenue from the 701st unit.
(b)
x = 800
$ Interpret the marginal revenue.
The sale of the 800th unit results in a loss of revenue of this amount
.This is the additional revenue from the 700th unit.
This is the additional revenue from the 801st unit
.The sale of the 801st unit results in a loss of this amount.
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