Question

The total revenue (in dollars) from the sale of a toasters is R(x) = 120x - 0.5x^2Evaluate the marginal revenue at the following values:(A) R'(100) =(B) R'(450) =

Answer 1

Given

The total revenue in dollars from the sale of a toasters is:

`R(x)\text{ = 120x - 0.5x}^2`

The marginal revenue R'(x) is the first derivative of the total revenue

`R^(\prime)(x)\text{ = 120 - x}`

(a) R'(100)

The value of the marginal revenue at 100 can be obtained by substitution:

`\begin{gathered} R^(\prime)(100)\text{ = 120 - 100} \\ =\text{ 20} \end{gathered}`

Answer: 20

(b) R'(450)

The value of the marginal revenue at 450 is obtained by substitutionubstit

`\begin{gathered} R^(\prime)(450)\text{ = 120 - 450} \\ =\text{ -330} \end{gathered}`

Answer: -330