Question

A linear revenue function is R = 12x. (Assume R is measured in dollars.) what is the slope? What is the revenue received from selling one more item if 50 are currently being sold?

Answer 1

12 ; 12 dollars

Explanation:

Data provided in the question:

Revenue function, R = 12x

R is in dollars

Now,

The slope can be found out by differentiating the above revenue function w.r.t 'x'

thus,

`\frac{\textup{dR}}{\textup{dx}}`=
`\frac{\textup{d(12x)}}{\textup{dx}}`

or

slope = 12

Now, for the second case of selling one more unit i.e x = 1, the revenue can be obtained by substituting x = 1 in revenue function

therefore,

R = 12 × 1 = 12 dollars