Final answer:
The total revenue from the sale of 500 units in a monopoly market, given the demand function p = 320 - 0.1x, is calculated by first finding the price at which the units are sold, then multiplying this price by the number of units. The total revenue is $135,000.
Step-by-step explanation:
To find the total revenue from the sale of 500 units in a monopoly market, we can use the given demand function p = 320 - 0.1x, where x is the number of units and p is the price in dollars. First, we plug in the value of x (500 units) into the demand function to find the price p:
p = 320 - 0.1(500)
p = 320 - 50
p = 270 dollars
Next, we calculate the total revenue by multiplying the price at which each unit is sold by the number of units sold:
Total Revenue = price per unit (p) × number of units sold (x)
Total Revenue = 270 × 500
Total Revenue = $135,000
Therefore, the total revenue from the sale of 500 units is $135,000.
CORRECT QUESTION:
Total revenue is in dollars and x is the number of units. Suppose that in a monopoly market, the demand function for a product is given by the following equation, where x is the number of units and p is the price in dollars.
p = 320 − 0.1x
(a) Find the total revenue from the sale of 500 units.