Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Suppose that a wholesaler expects that his monthly revenue, in dollars, for an electronic game will be R(x) = 110x 0.11x2, o s x s
Suppose that a wholesaler expects that his monthly revenue, in dollars, for an electronic game will be R(x) = 110x 0.11x2, o s x s 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 = 400 $ Interpret the marginal revenue. ' The sale of the 400th unit results in a loss of revenue of this amount. ' This is the additional revenue from the 400th unit. ' This is the additional revenue from the 401st unit. ' The sale of the 4015t unit results in a loss of this amount. (b) x = 800 $ Interpret the marginal revenue. " This is the additional revenue from the 801st unit. ' The sale of the 800th unit results in a loss of revenue of this amount. ' This is the additional revenue from the 400th unit. ' The sale of the 8015t unit results in a loss of this amount
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started